INSTITUTE OF MANAGEMENT STUDIES

BUSINESS REPORT ON Mc Donalds:Employees Motivation
SUBMITTED TO: Prof.Soumen Mukherjee
Singh(09275) Srivastava (09250) Amritanshu Kumar (09253) Anshita Srivastava (09256) Apoorv Singh (09258) Deepak Yadav (09264) Harish Kumar (09267) Khushboo Prabha (09270) Shalabh Sharma (09284) Shobhit Dixit (09287) Vatsal

SUBMITTED BY:
Pawandeep Akanksha

Tripathi (09292) Shubham Sharma (09298) Vishal Kumar Gupta (09248)

SUB TITLE: NAME OF THE AUTHOR:
Pawandeep Singh (09275) Akanksha Srivastava (09250) Amritanshu Kumar (09253) Anshita Srivastava (09256) Apoorv Singh (09258) Deepak Yadav (09264) Harish Kumar ( 09267) Khushboo Prabha (09270) Shalabh Sharma (09284) Shobhit Dixit (09287) Vatsal Tripathi (09292) Shubham Sharma (09298) Vishal Kumar Gupta (0948)

NAME OF THE AUTHORITY: Prof.Soumen Mukherjee APPROVALS: IMS Ghaziabad DISTRIBUTION LIST: NIL

PREFACE

This project aims to cover the motivation level of employees of Mc Donald. An effort has been made to provide an extensive coverage of the latest method for employee motivation that can aid a manager in decision making. The highlight of this project is its simple style of presenting perceived complex material.This project report is extremely reader friendly which explain how Mc Donald motivates its employees. Another factor which distinguish this project is the recommendation made by the author to Mac Donald. From this project reader will come to about Mc Donald and also about its history.This project will provide reader with also steps taken to motivate the employees which wre working over there. This project is total reader friendly and reader will be able to know about the Mc Donalds. This project is mostly focusing on the employees motivation.And also this project tell about the growth of its in last 2 years. Any recommendation from readers are welcome:

ACKNOWLEDGEMENT
We have a great pleasure in presenting our project entitled MC DONALD, We take this an opportunity to express our deepest gratitude and ineptness to all those who contributed indirectly their valuable time and assisted us in our project and we would like to give our sincere thanks to “Mr Sanjay Singh “,manager of Mc Donalds who gave their precious time to us and helped us a lot in doing our project. We would like to thank our project guides and our faculty, Prof Soumen Mukherji, for this approval and also for his valuable guidance and support in completing our project of Mc DONALDS. Last but not the least we would like to express our sincere thanks to those who directly or indirectly helped in our project.

TEAM MEMBERS:
(09275) Akanksha Srivastava(09250) Amritanshu Kumar(09253) Anshita Srivastava(09256) Apoorv Singh (09258) Deepak Yadav (09264) Harish Kumar ( 09267) Khushboo Prabha (09270) Shalabh Sharma (09284) ____________

SIGNATURE:
____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________

Shobhit Dixit (09287) Vatsal Tripathi (09292) Shubham Sharma (09298) Vishal Kumar Gupta (0948)

____________ ____________ ____________ ____________

TABLE OF CONTENTS
1. Summary……………………………………………6 2. Introduction………………………………………….11 3. About Mc Donalds…………………………………..15 4. Description…………………………………………..17 5. Conclusion………………………………………….45 6. Recommendation……………………………………..47 7. Questionnaire………………………………………..55 8. References…………………………………………….69 9. Bibliography…………………………………………70 10. Glossary………………………………………………71 11. Index…………………………………………………..72

SUMMARY
McDonalds India is a locally owned company managed by Indians. McDonalds is a leader in convenient foods and beverages, with revenues of about $23 billion and over 1.6 million employees serving the customer’s world wide. The company consists of the snack business of Beverages and Foods. This brands are available in nearly 115 countries having more than 24,500 restaurants in the world providing 24 hour service. Having about 1 billon customers to be served all over the world. McDonalds’s success is the result of superior products, high standards of performance, distinctive competitive strategies and the high integrity of our people. McDonalds is continuing to expand and introduce new alternative beverages in the market. Approximately 85% of McDonald’s restaurant businesses worldwide are owned and operated by franchisees. All franchisees are independent, full-time operators. McDonald’s was named Entrepreneur’s Number-one franchise for 1997 It’s mission is to be the world's premier consumer Products Company focused on convenient foods and beverages. It seek to produce healthy financial rewards to investors as it provide opportunities for growth and enrichment to its employees, it’s business partners and the communities in which it operate. And in everything it do, it strive for honesty, fairness and integrity you could now join it’s team. Greater variety and quality choices surprise and delight customers with the food and beverage they

desire. McDonald’s corp. is currently one of the most successful consumer products company in the world with annual revenues exceeding $23 million and has more than 1.6 million employees. McDonald’s products are recognized and are most respected all around the globe. Currently, its divisions operate in all over the world in beverages, snack foods, and restaurants. The corporations increasing success has been based on high standards of performance, marketing strategies, competitiveness, determination, commitment, and the personal and professional integrity of their people, products and business practices. McDonald’s believes their success depends upon the quality and value of their products by providing a safe, whole some, economically efficient and a healthy environment for their customers; and by providing a fair return to their investors while maintaining the highest standards of integrity.

Mcdonald’s India A locally Owned Company
McDonald’s has 132 restaurants in India of which 79 are in North & East India and 53 in West & South India. McDonalds India is a locally owned company managed by Indians. In Delhi, McDonalds restaurants are owned and managed by Vikram Bakshis Connaught Plaza restaurants Pvt. Ltd. McDonalds India. Local Sourcing is Key for Truly Indian Products around the world, McDonald’s traditionally operates with local partners or local management. In India too, McDonand’s purchases from local suppliers. McDonald’s constructs its restaurants using local architects, contractors, labour and - where possible - local materials. McDonald’s hires local personnel for all positions within the restaurants and contributes a portion of its success to communities in the form of municipal taxes and reinvestment. Its 98% of the inputs are obtaned domestically. For three years before the opening of the first McDonald’s restaurant in India, McDonald’s and its international supplier partners worked together with local Indian companies to develop products that meet McDonald’s This company is responsible for the running of

vigorous quality standards. These standrds also strictly adhere to Indian Government regulation on food, health and hygiene. Part of this development involves the transfer of state-of-the-art food processing technology which has enabled Indian business to grow by improving their ability to compete in today’s respect to the local culture. McDonald’s has developed a menu specially for India with vegetarian selections to suit Indian tastes and culture. Keeping in line with this McDonald’s does not offer any beef or pork items in India. McDonald’s has also re-engineered its operations to addres the special requirements of a vegatarian menu. Vegetable products are prepared separately, using dedicated equipment and utensils. This separation of vegetarian and non-vegetarian food products is maintained throughout the various stages of procurement, cooking and serving. McDonald’s India is an employer of opportunity, providing quality employment and long-term careers to the Indian people. the average McDonald’s restaurant employs more than 100 people in 25 different positions - from cashier to restaurant manager. McDonald’s world-class training inputs to its employee could be seen in the present close to 1000 employees currently in Mumbai and Delhi. McDonald’s believes in giving back to the communities it serves. Wherever McDonald’s goes it becomes a part of the community it operates in and contributes towards the development of the locality. For example, McDonald’s has introduced the concept of ‘Litter Patrol’ - McDondld’s employees go around the immediate vicinity of the restaurant every day, packing up garbage left behind not only by customers from McDonald’s restaurants but also by other visitors to the area. The result is a cleaner neighborhood. MOTIVATION AND SATISFACTION Performance appraisal can have a profound effect on levels of employee motivation and satisfaction - for better as well as for worse. Performance appraisal provides employees with recognition for their work efforts. The power of social recognition as an incentive has been long noted. In fact, there is evidence that human beings will even prefer negative recognition in preference to no recognition at all. If nothing else, the existence of an appraisal program indicates to an employee that the organization is genuinely interested in their individual performance and development. This alone can have a positive influence on the individual's sense of worth, commitment and belonging.

The strength and prevalence of this natural human desire for individual recognition should not be overlooked. Absenteeism and turnover rates in some organizations might be greatly reduced if more attention were paid to it. Regular performance appraisal, at least, is a good start. Training and Development Performance appraisal offers an excellent opportunity - perhaps the best that will ever occur - for a supervisor and subordinate to recognize and agree upon individual training and development needs. During the discussion of an employee's work performance, the presence or absence of work skills can become very obvious - even to those who habitually reject the idea of training for them! Performance appraisal can make the need for training more pressing and relevant by linking it clearly to performance outcomes and future career aspirations. From the point of view of the organization as a whole, consolidated appraisal data can form a picture of the overall demand for training. This data may be analyzed by variables such as sex, department, etc. In this respect, performance appraisal can provide a regular and efficient training needs audit for the entire organization.

Recruitment and Induction Appraisal data can be used to monitor the success of the organization's recruitment and induction practices. For example, how well are the employees performing who were hired in the past two years? Appraisal data can also be used to monitor the effectiveness of changes in recruitment strategies. By following the yearly data related to new hires (and given sufficient numbers on which to base the analysis) it is possible to assess whether the general quality of the workforce is improving, staying steady, or declining.

Employee Evaluation Though often understated or even denied, evaluation is a legitimate and major objective of performance appraisal. But the need to evaluate (i.e., to judge) is also an ongoing source of tension, since evaluative and developmental priorities appear to frequently clash. Yet at its most basic level, performance appraisal is the process of examining and evaluating the performance of an individual. Though organizations have a clear right - some would say a duty - to conduct such

evaluations of performance, many still recoil from the idea. To them, the explicit process of judgment can be dehumanizing and demoralizing and a source of anxiety and distress to employees. It is been said by some that appraisal cannot serve the needs of evaluation and development at the same time; it must be one or the other. But there may be an acceptable middle ground, where the need to evaluate employees objectively, and the need to encourage and develop them, can be balanced.

APPRAISAL PROCESS Many organizations make every effort to approximate the ideal process, resulting in first-rate appraisal systems.

Total Quality Management- To Energize and motivate the employees, Mac Donald can Organised a Total Quality Management Programmee.

INTRODUCTION

THE INDIAN FAST FOOD MARKET - AN OVERVIEW
We can say that our team has depicted excellent performance , because when we are continuously failing in getting an appointment , we never loose the hope with the moral of the story. This reveals our outstanding performance & curiousity for the report . From Moserbear to Edlewiss Capital & from Edlewiss Capital to Pantaloons & from pantaloons to mc donald & our journey finished but not goal. Upto the year 1995 Indian food market was predominantly dominated by the traditional dhabas, potential restaurants in the customers colony and some restaurants

in a five star hotel. Having fast food i.e., burgers, pizzas etc., was considered to be an option for eating out. It was not at all synonymous with the American concept of fast food as a quick takeaway bite or a substitute for lunch. Apart from fast food being available at the local colony restaurants and at some five star restaurants, Nrulas was the only fast food chain existing in the country with its restaurants expanding with every passing year since its inception. It has been almost 50 years now since its set up and there is hardly any one who doesn’t know that Nirulas exists. Nirulas was the first one to bring fast food to India back in the 50’s since then it has evolved into an eating place with a tremendous brand equity and brand recognition. It proved to be a perfect eating place for an average middle class who wants to eat out at an affordable price who cant afford the five-star restaurants and would not want to go to the local dhabas. Nirulas almost had a monopoly for decades due to the way it has been placed. It is a place where a person from an average middle class group to upper class group can go to eat out. Its popularity has increased over the decades. With the trends changing and the incomes rising almost anybody who can afford to eat out could go for a snack at Nirulas. However the year 1995-96 witnessed a drastic change. 1996 is considered to be the year of India’s entry into the world food market. International giants such as McDonalds, KFC, TGIF, Dominos, Pizza Hut all bombarded the Indian food market. Before these, UK-based joint called Wimpy’s had established its chain in the country in 1990. By year 1996 it had about three to four joints established in Delhi. However it did not pose much of a threat to Nirulas reason being lack of variety and that wimpys was looked at more of a hang-out place rather than eating out with the family. Its been the American international giants i.e., McDonalds, Pizza Hut etc., who have targeted their restaurants to the families. Apart from the foreign and Indian fast food chains setting up shop, there are a range of specialty restaurants offering varied fare such as Chinese, Mexican, French, Italian etc. These places however offer range of items different from burgers, pizzas etc, but they definitely are competition to both foreign and Indian fast food chains. However, restaurant business is such which is surrounded by threat from everywhere

be it Indian joints or foreign joints. It is only these international joints and specialty restaurants which are gradually coming up and some Indian restaurants which have made up the food market. Prior to this it was only the local restaurant which became visible while passing by or through local banners etc., and the five star restaurants were for the elite class out of reach by the average middle class customer. There was hardly any awareness or promotion to beat competition. Each of the foreign food joints that have come into the country have their own strategy lined up to differ from the rest. Each of these studied the Indian tastes and style and thereby targeted the Indian customer. An average Indian restaurant goer is no convenience eater, unlike the Americans. If he is paying, he is paying for food that tastes good (Spicy, soft, savory etc.), not for how pleasantly the stuff is served or how spotless the widows are. He wants food for that can make him come back to the restaurant. An Indian food joint owner would definitely understand this but an American company which comes and places itself directly without knowing the customer is definitely in for trouble. Customer loyalty in a restaurant business is essentially low. A customer when he comes to a restaurant usually looks at the quality of food, variety, ambience, speed of delivery and the location. The variety would influence the frequency of visits since taste is a dominating factor to the Indian customers. Almost all the fast food chains both Indian i.e., Nirulas and foreign i.e., McDonalds etc., are targeting the families. This serves to be an advantage because the turnaround time is short and family has higher propensity to spend because different members order larger variety of dishes. Each of these restaurants deliver quality, value and services in its own way through its line of strategies. The emphasis is on the value that the restaurant is delivering to the customers.

Companies profile:
McDonalds is a leader in convenient foods and beverages,with revenues of about $23 billion and over 1.6 million employees serving the customer’s worldwide .The company consists of the snack business of Beverages and foods.

Mc Donald’s success is the result of superior products,high standards of performance,distinctive competitive strategies and the integrity of our people.Mc Donalds is continuing to expand and introduce new alternative beverages in the market.Approximately 85% of Mc Donalds restaurant business worldwide are owned and operated by franchisees.All franchisees are independent,full-time operators.Mc Donalds was named Enterpreneur’s Number-one franchise for 1997. Their mission is to be the world’s premier consumer Products Company focused on convenient food and beverages.They seek to produce healthy financial rewards to investors as they provide opportunities for growth and enrichment to their employees, their business partners and the communities in which they operate.And in everything they do,they strive for honesty,fairness and integrity they could now join their team.Greater variety and quqlity choices surprise and delight customers with the food and beverage they desire Mc Donald’s corp.is currently one of the most successful consumer products company in the world with annual revenues exceeding $23 million and has more tha 1.6 million employees. Mc Donald’s products are recognized and are most respected all the globe. Currently,its devisions operate in all over the world in beverages,snack foods, and restaurants.The corporation increasing success has been based in high standards of performance, marketing strategies, competitiveness, determination,commitment, and the personal and professional integrity of their people,products and business practices. They believe their success depends upon the quality and value of thei products by providing a safe ,whole some,economically efficient and a healthy enviroment for their customers, and by providing a fair return to their investors while maintaing the highest standards of integrity.

McDONALD’S
The making of this project teach us a lot , we groom ourself . During preparing this project we learn that “ life is not easy”. Inspite of working from day to noon we come to know that we are standing in a same path as we were before. Before starting our business report we have done a small meeting amongst our group. I, Pawandeep Singh Bhandari, team coordinator, of the group, first decided to energize and motivate entire group so that we can work as team and not as a group. To make business report more lucrative we have decided to work as a team and remember the words given by Honourable MR.ARINDAM CHODHARY he mostly demonstrate that “ TEAM MEANS TOGETHER WE CAN ACHIEVE MORE “ . his words has shown us the direction & due to that we mentor us competent group . The task to energize the group has really become very easy for me because they are soo curious to complete the task . we propounded to my group members that the work assigned to us is not so easy so it’s the correct time to wake up. But on the contrary the words spoken by our team members MR. SOHBIT DIKSHIT & MISS. ANSHITA that “ HARDWORK HAS NO SUBSTITUTE “ .Our whole team was really impressed with these words and in the mean time we feel that now we are not a group we are a team . As MAHATMA GANDHI propounded that “Failure and success are part of life “ and while preparing this BUSINESS REPORT we feel that :On a very first day we have decided to visit Moserbear which is located in greater noida but after a short conversation with the responsible person of marketing department we loose our confidence because he said that they are not open for summer internship and perhaps we will not open also. We were very much depressed . But on the contrary our another team member like Mr.shalabh sharma come with a good news that he has taken the appointment from WIPL & SHRIRAM PISTON WHICH WERE ONE OF THE MOST COMPETENT COMPANY .Even we are so curious after listening that according to FORTUNE MAGAZINE shriram piston stands in an apex position. But unfortunately because of hectic schedule in our college we miss the appointment and again we felt that we have lost everything instead of words. Now no options left with us rather to keep patience & decide what to do during this mean time we feel that we are burnout and nothing is left in the hand . Then our team decided to go for a movie “ 3 IDIOTS” and the movie was awesome after coming out from the multiplex we were rejuvinate & in a one tone & in one word we say “ WE ARE STILL FIRED UP & READY TO GO”.LESSON FROM THE MOVIE BECOMES FRUITFULL- We learn from the movie that how to cope up with the worst situations . KNOWLEDGE IS WISDOM we learnt from the movie. The speech given by our chairperson Mrs. Urvashi Makkar MOTIVATED & ENERGIZE ua a lot . THE most pivotal thing in the entire batch of IMSGHAZIABAD which you will see in our team is LEADERS. The lecture given by Mrs. Urvashi Makkar & faculty member Mrs.Sonia has teached us that “ LEADERS

ARE NOT MERELY BORN BUT MADE”. We can say that because the leadeship quality is precisely visual in our team. Every member has given there heart , there full interest for making a good report. Again the day started with a good news because I Pawandeep singh Bhandari and my team had done a short conversation with MR. JATIN who is the AREA SALES MANAGER OF EDLEWISS CAPITAL . We Have taken an appointment with him and even in this short conversation We persuade him that he has become ready to introduce me with the “ HR & head of department OF EDLEWISS CAPITAL MR . GAUTAM CHOPRA. Before my visit We have done my homework and learned about the history & growth of Edlewiss capital . As We are getting the opportuninty to meet the head of department of EDLEWISS CAPITAL , We want to prove ourself because we remember the first lecture given by MR. SOUMEN MUKHERJEE that “ THERE IS NO SADDER SIDE THAN BEING PESSIMIST” . So the day come and We went to EDLEWISS CAPITAL & WE GOT AN APPOINTMENT but on the contrary they have said that we have to prepare a BUSINESS REPORT of EDLEWISS CAPITAL OF GURGAON BRANCH & at the mean time We cant say him anything . After that We plead the authority for summer internship & We have been selected at a stipend of Rs 5000. Its really a triumph for ous. Now again we held a meeting & decided what to do now we all are so tensed & still our team is saying “ALL IS WELL “ . We decided to move to a MC DONALD & we we are success over here .We meet to the store manager of macdonald MR. SUNIL BANGA who is the store manager of Mc Donald which is located in Silver city at Ghaziabad.

A). AN OVERVIEW

History and Background In 1955, Ray Kroc, a 52-year old salesman of milkshake mixing machines, became interested in a string of seven restaurants owned by Richard and Maurice McDonald. These two founded the quick service restaurant industry when they converted their barbecue drive in with car hops into the world’s first McDonand’s limited menu, self service drive-in in 1958, in California. Kroc liked their fast-food restaurant concept and bought the Chain for $2.7 million. He opened his first McDonalds in Illinois in April 1955 and founded the company that evolved into McDonalds corporation. He decided to expand the chain by selling Franchises, and the number of restaurants grew rapidly. Worldwide Operations There are more than 23,000 McDonalds restaurants in III Countries (as of Jan. 1998). McDonalds 1997 year end system wide sales were $ 33,368.3 billion. McDonalds is the largest and the best known global food service retailer. Its global market potential is enormous seeing the member of restaurants it has. On any day McDonald’s serves less than one percent of the worlds population. Its outstanding brand recognition. (It is one of the most recognised brand all over the world), experienced management, high quality food, site development, high quality food, site development expertise, advanced operational systems and unique global in frastructure position it to capitalise on global opportunities. McDonalds Vision is to dominate the global food service industry. Global dominance means setting the performance standard for customer satisfaction and increasing market share and profitability through successfully implementing convenience value and exception strategies.

In order to expand its operation McDonalds goes by a simple thumbrule to estimate haw many outlets it wants: One restaurant for every 25,000 people with new markets sprouting in so many parts of the would, the chain is expanding at a breathtaking pace of one restaurant every three hours. This can be known from the following:

Period Jan. 2008 Jan 2009

No. of outlets 30567 31,000

Countries 113 120

Sales $ 60 billion $ 67 billion

McDonalds franchises restaurants in many international markets, and decisions relating to the selection of candidates are made local by the management in the country where the restaurant is located.

McDONALD’s India
A locally Owned Company McDonalds India is a locally owned company managed by Indians. In Mumbai Amit Jatias company, Hard castle restaurants Pvt. Ltd., owns and manages McDonalds restaurants. In Delhi, McDonalds restaurants are owned and managed by Vikram Bakshis Connaught Plaza restaurants Pvt. Ltd. Both these individuals are responsible for the running of McDonalds India. Local Sourcing is Key for Truly Indian Products Around the world, McDonald’s traditionally operates with local partners or local management. In India too, McDonand’s purchases from local suppliers. McDonald’s constructs its restaurants using local architects, contractors, labour and - where possible - local materials. McDonald’s hires local personnel for all positions within the restaurants and contributes a portion of its succes to communities in the form of municipal taxes and reinvestment. Its 98% of the inputs are obtaned domestically. McDonald’s sources food products from local companies. mutton patties are supplied by Al-Kabeer, Hyderabad, Andhra Pradesh; fresh lettuce comes from Pune, Ooty, Maharashtra nd Dehradun; cheese from Dynamix Dairies, Baramati, Maharashtra;

sesame seed buns and sauces from Cremica Industries Phillaur, Punjab, and pickles from VST Natural Foods, Hyderabad, Andhra Pradesh. Setting Up of an Extensive Food Chain For three years before the opening of the first McDonald’s restaurant in India, McDonald’s and its international supplier partners worked together with local Indian companies to develop products that meet McDonald’s vigorous quality standards. These standrds also strictly adhere to Indian Government regulation on food, health and hygiene. Part of of this development involves the their ability to compete in today’s international markets. For instance, Cremica Industries worked with another McDonald’s supplier fropm Europe to develop technology and expertise which allowed Cremica to expand it business from baking to also providing breading and batters to McDonand’s Indian and other companies. Another benefit is expertise in the areas of agriculture which allowed McDonald’s and its suppliers to work with farmers in Ooty, Pune and Dehradun and other regions to cultivate high quality lettuce. This includes sharing advanced agricultural technology and expertise like utilisation of drip irrigation systems which reduce overall water consumption and agricultural management practices which result in greater yields. In some cases, these Indian suppliers had the technology - but no market for the products they produced. For exampole, Dynamix Dairies -- through its relationship with McDonald’s was introduced to a large customer of milk casein and other milk derivatives. The two companies entered into a business relationship resulting in an initial export order of aproximately US $ 12 million per year - with the potential to increase. McDonald’s local supply networks through Radhakrishna Foodland, to get products from the various suppliers to restaurants in Delhi and Mumbai. Respect for the Indian Customes and Culture McDonald’s worldwide is well known for the high degree of respect to the local culture. McDonald’s has developed a menu specially for India with vegetarian selections to suit Indian tastes and culture. Keeping in line with this McDonald’s does not offer any beef or pork items in India. McDonald’s has also re-engineered its transfer of state-of-the-art food processing technology which has enabled Indian business to grow by improving

operations to addres the special requirements of a vegatarian menu. Vegetable products are prepared separately, using dedicated equipment and utensils. This separation of vegetarian and non-vegetarian food products is maintained throughout the various stages of procurement, cooking and serving.

An Employer of Opportunity McDonald’s India is an employer of opportunity, providing quality employment and long-term careers to the Indian people. the average McDonald’s restaurant employs more than 100 people in 25 different positions - from cashier to restaurant manager. McDonald’s world-class training inputs to its employee could be seen in the present close to 1000 employees currently in Mumbai and Delhi. recipients of McDonald’s support - either through the use of the restaurants for meetings or for fund-raising activities. McDonald’s International charitable foundation, Ronabld McDonald House Charities supports charities around the world. In fact, in 1993, RMHC donated to the Indian Prime Minister’s Relief Fund following the devastating earthquake in Maharashtra. Quality, Service, Cleanliness and Value The McDonald’s philosophy of QSC & V is the guiding foce behind its service to the customers. McDonald’s India serves only the highest quality products. All McDonald’s suppliers adhere to Indian government regulations on food, health and hygiene while continuously maintaining McDonald’s own reccognized standards. All McDonald’s products are prepared using the most current, state-of-the-art cooking equipment to ensure quality and safety. At McDonald’s the customr always comes first. McDonald’s India provides fast, friendly service - the hallmark of McDonald’s which sets its restaurants apart from others. McDonald’s restaurants provide a clean, comfortable environment especialy suited for families. this is achieved through McDonald’s stringent cleaning standards, carefully adhered to.

McDonald’s menu is priced at a value that the largest segment of Indian consumers can afford. McDonald’s does not sacrifice quality for price - rather McDonald’s leverages economies of scale to minimise costs while maximising value to customers. McDonalds has a 20-year profitability plan for India and it intends having at least 50 restaurants here by the year 2000. The company has already invested Rs. 50 crore in its Indian operations, and each of the two joint venture partners. Community Partnership McDonald’s believes in giving back to the communities it serves. Wherever McDonald’s goes it becoes a part of the community it operates in and contributes towards the development of the locality. For example, McDonald’s has introduced the concept of ‘Litter Patrol’ - McDondld’s employees go around the immediate vicinity of the restaurant every day, packing up garbage left behind not only by customers from McDonald’s restaurants but also by other visitors to the area. The result is a cleaner neighbourhood. To commemorate 50 years of Indian independence, on 15 August, 1997, McDonald’s Mumbai organised a ‘No Grabage Drive’, in association with the ‘Brihan Mumbai Municipal Corporation’ and five schools in Bandra. Inaugurated by the Municipal Commissioner, this was in support of BMCs ‘Zero Garbage, initiative. Other community activities undertaken by McDonald’s in India includes the adoption of local public parks for restoration and beautification, thereby providing a play area for children. In fact in Dlehi, McDonald’s has even addressed the security issues relevant to a particular residential colony.

Organizational Culture
The overall image and local reputation of McDonald’s as an employer is shaped daily by many factors, including the benefits programs, compensation package, fun working place coupled with numerous enthusiasm activities, employee development programs, and other world renowned best people practices. Employees, the key ingredient play a vital role each day in shaping our McDonald’s

all employment image through their performance behavior. Realizing its people strength it provides the best employment experience to employees in order to achieve the goal of giving the worlds best quick-service restaurant experience to our valued customers. It strives to recruit the best, hire the best, and provide the best place to work. Who are the best employees for McDonald’s? Best employees are those who can befit themselves in the culture of McDonald’s. The outlook of its organizational culture is congruent with what happens internally. McDonald’s is a place where people of all ages love to go to while hanging out, having hunger or during their leisure hours. McDonald’s is not only a fun place for its customers but also for its employees. The commitment to its employees is shaped on the simple fact “We value you, your growth and your contributions and this is what we strive to achieve through our actions every day.” Five principles guide the commitment.

Respect and Recognition: Every employee is consistently treated with
dignity and respect. All employees are valued and recognized for their contribution to the organization.

Values and Leadership Behaviors: Every employee is a leader who listens and communicates openly and honestly and every employee acts in the interest of all other people who contribute to the success of the business, including customers, owner, and suppliers.

Total Compensation: To recognize the people part in the business success, the Pay and Rewards program follows a Pay-for-Performance philosophy, the better results produced by employees, the greater pay opportunities.

Learning, Development and Personal Growth: Employees has the opportunity to advance in skill, contribution and career level through highquality training, coaching and feedback.

Resources to Get the Job Done: It is ensured that a comfortable place to work with access to the materials, equipment and information has been provided to do the job.

Characteristics of McDonald’s Culture

First, the culture is valuable; it enables the firm to do things and behave in ways that lead to high sales, low costs, high margins, or in other ways add financial value to the firm. Because superior financial performance is an economic concept, culture, to generate such performance, must have positive economic consequences. Second, the culture is rare; it has attributes and characteristics that are not common to the cultures of a large number of other competitors firms. Finally, its culture is imperfectly imitable; firms without these cultures cannot engage in activities that will change their cultures to include the required characteristics, and if they try to imitate these cultures, they will be at some disadvantage (reputational, experience, etc.) compared to McDonald’s as they try to imitate.

Management Hierarchy

Managing Director
Head of Marketing
Senior marketing executive

Director of Finance
Accounts Manager Finance manager Employees

Human Resource head

Marketing executive

Brand Manager

Research & Development officer Product Development Market research Team Compensation officer Recruitment& Selection Training& Development

Assistant Brand Manager Customer service manager Sales manager Branch manager Branch employees

Management’s Advantage

Role

in

sustaining

Competitive

The managerial and organizational process should share a good integration and coordination. The much needed ‘value’ is created thereby as everyone strives to work for a common goal. The organization should learn and bring about changes according to the need of the hour and should always be flexible to changes in the environment such as customer trends, legal or government restriction and developments in the technology. McDonald’s management is presently concentrating on this advantage by concentrating on organizational behavior and managerial expertise. Previously this advantage was ignored as the organization was more into expansion of its outlets over the globe than strengthening its core advantage. As the result the revenue did not see much of a change while newer outlets were open. The company suffered a massive loss first time since their inceptions which further lead to the change in the managerial heads.

Technological, structural and financial assets of a company are excellent market position which helps in the SCA. McDonalds no doubt is abundant with such aspects like structure, technology and finance. To identify and implement these assets in the proper direction towards the improvement of the company is all that is needed. After 2003 the company’s management has really started to concentrate on its greatest advantages. Most of all the greatest advantage is the vision or the dream with which the company was started. Sustaining this dream over the years is any companies’ greatest advantage. A brand usually revolves around this vision sustaining this vision and working in lieu with it is a great SCA. McDonalds was started out to help people who had very little time to cook or was too busy to get into a proper restaurant. The vision was to provide quick service, cheap products and quality satisfaction. Keeping this vision in mind the company which slackened a bit because of incompetent franchise holders is being weeded and new and better people are put in this place as the torch bearers of the company sustaining and living the vision. Today everything is outsourced from employee appointment to finance and customer care. No organization is best enough to handle all kinds of work. Moreover concentrating on every detail is not possible with a big concern especially like McDonalds. But great care should be taken not to outsource the core competences of the company. General advantages of outsourcing are cheap service, knowledge of markets offshore, flexible resources, speedy operations, expansion in supplier relationship etc. most of all the company can concentrate on its core competencies and outsource rest of its operation. Recently McDonald has tested its drive through order facility. Wherein it makes sure that the order placed with the outlet is accurate. The order taken by the outsourced company is reverted back to the home restaurant. These call center has a digital camera which clicks the vehicle you drive through and the delivery man back home can integrate the order and the person who placed it using the image of the car. Outsourcing thus helps in the increase of the external suppliers and fills up the difficulties faced because of the lack of the latest technologies and other innovations.

What started of as a success story with McDonalds had to face a number of risks, competitions and major set backs. What makes it still strong and ranked among the top business concerns is its core competences and the sustainable competitive advantages both internal and external. Of course keeping up with the changing times the company has also set foot in outsourcing but the point to keep in mind here is not to be driven away by this outsourcing mania. The management has to be good at pointing out the needs of outsourcing and implementing an appropriate plan for the purpose. This company has started to revert back to its golden glory recently because of large scale revamping of its organizational and structural changes being implemented.

STEPS TAKEN BY MC DONALDS TO MOTIVATE AND RETAIN EMPLOYEES When we had meeting with the manager we came to know about the steps which are taken by Mc Donalds to motivate employees which are as follows:

1: Operating Systems
The foundation of an efficient and effective workplace is the structure, discipline and consistency provided by well-conceived systematic operating methods. World-class companies like McDonalds have well defined operating methods. A policies and procedures (P&P) manual is critical to ensure that employees understand what is expected of them and know how they should handle the myriad of duties and responsibilities in the day-to-day operations of the business.

2: Employment Agreements and Job Descriptions
Legal agreements are often a “necessary evil” to ensure there is a “meeting of the minds” as to exactly what the parties agree to when they enter into an employeremployee relationship. The agreement should specify the term, termination, duties, responsibilities and compensation.

3: Training
New employees will need orientation before going to work in your business and then on-the-job training. Training should include a review of your policies and procedures,

with special emphasis on key subjects, such as customer service and your company philosophy and culture. Retraining should be done each year.

4: Tools to do the Job
Employee costs constitute a major expense in most businesses. Not giving your employees adequate tools to do the job is “penny wise and pound foolish.” Employing current technology can greatly improve efficiency and employee morale. Don’t forget to provide the little things that make employees’ jobs easier. Providing adequate tools to do the job will increase employee productivity and satisfaction.

5: Workplace Atmosphere
How your employees feel about their jobs is greatly influenced by your workplace atmosphere. Extravagance is not necessary, but you should provide a pleasant place to work. Little things like a fresh coat of paint make a big difference. Don’t neglect the break room and the rest room. The impression you make on your employees is just as important as the image you project to your customers. Keeping the workplace clean and uncluttered requires the cooperation of all employees. Employees’ attitudes are affected by their work environment; make sure it is positive!

6: Support
Your employees need someone readily available to help when they have questions or encounter problems. Adequate staffing to properly serve all customers is also essential for employee morale. Your people should not feel like they are left on their own.

7: Company Culture
World-class companies always have in common World-class cultures. Leaders of such businesses recognize that profit is a byproduct of meeting the needs of customers and employees. A business also has a responsibility to give back to the community and most employees want to make meaningful contributions through their work. They also like to take pride in their work and deliver quality products and services. And they need to continue to learn and grow professionally. A good company culture enables employees to combine their strengths to meet these mutual needs as part of a dynamic team.

8: Compensation
A performance-based compensation plan should encourage employees to behave in ways that will attain the company’s goals, while also meeting your employees’ personal objectives. Company goals usually include growth, profitability, quality service, efficiency, effectiveness, image and reputation. To attract desirable employees, your pay scale should be competitive. The pay plan must also be objective and fair to all employees. Rewards should be commensurate with contributions.

9: Benefits
Even if your profit margins are thin, you can provide benefits that are not costprohibitive, or even free. Providing more benefits puts you in a better competitive position to attract and retain employees. A profit sharing plan based on growth in profits is a win-win. You could offer a 401k plan or a pre-tax benefits savings plan. Group life and disability insurance and other benefits can be provided through the Greater Richmond Chamber. Group discounts on products and services are also extended through the Chamber. Your company can become a member of a credit union to enable employees to qualify for benefits. Little perks, like buying pizza for the staff on a hectic day, help to make your employees appreciate their jobs. Be creative!

10: Recognition
Numerous studies have documented the fact that money is not the primary motivator for most workers. In fact, people who are motivated primarily by money may not be good employees. Recognize your people frequently for their good work and they will repeat the performance frequently. Praise must be sincere and should be distributed equitably, if warranted. When possible, praise people publicly in meetings or employee newsletters. Be sure to give credit and rewards for good ideas that benefit the company. Reinforce the right behaviors. Avoid saying “Great, but.” Look for key measures to recognize employees, such as production or customer retention. Come up with contests to recognize your people. Give recognition certificates, plaques and prizes other than money, such as tickets for movie rental or sports events, or gift certificates for merchandise or dinner. A tangible reward makes a more lasting impression. Praising your best performers (the top 10-20%) will raise the bar for your weaker people. The goal is to encourage behaviors that build your business and recognize your people for practicing those behaviors as often as possible.

11: Communication
Lack of effective communication from superiors is often the greatest cause for employee dissatisfaction and premature departure. The best managers listen to and communication frequently with all employees; and they make it easy for employees to tell them about problems and concerns. Communication should include training, group and individual meetings and, most important, daily dialogue with employees. As the manager, you must make the time to regularly talk with everyone. E-mail is a good communication vehicle, but the phone is more personal; and neither can replace face-to-face meetings. Employee newsletters can enhance communication. Keep communication simple, provide adequate information and give examples for clarity. Show your trust in your people and make them feel included by sharing financial and other inside information. Management can make much better decisions by getting input from front-line employees. If your people know their voices are heard and feel like they are part of the decision making process, they will be much happier, loyal and more likely to support new programs.

12: Empowerment

Engage your employees to make decisions; give them the authority to act in the best interests of the company. Provide training in resolving customer problems and then trust them to make the right choices. Give your people some time to think and plan by building in some slack time through adequate staffing and by providing support. Don’t criticize employee mistakes. Recognize that making decisions naturally results in making mistakes. If you criticize honest mistakes, your people will stop making decisions. Failure is also OK, because it is a normal part of the road to success. Nothing is more gratifying than to see your people develop the skills and confidence necessary to act independently and make sound decisions that are in the best interests of the company and your customers.

13: Leadership
Much has been written about leadership and you should make the time to learn how to be a more effective leader. Here are ten basic keys: (1) Integrity: always tell the truth and always keep your promise, even when it hurts. (2) Trust: You must first demonstrate your trust in people by making yourself vulnerable before you can expect them place their trust in you. (3) Respect: If you really don’t care about your people they will sense your lack of concern and will not respect you. (4) Fairness: Treat all employees fairly and equally (including family members) regardless of your personal feelings. (5) Vision: To be a true leader, you must have an unfaltering vision, be able to communicate it to your people, and get them to understand and share in your vision. (6) Optimism: You must always be positive and confident that the company will succeed; but you should also be realistic. (7) Decisive: A leader must make decisions and stick with them as long as they make sense. Consensus is not always better than an individual decision, particularly in a crisis situation. Remember, “The buck stops with you!” Trust your intuition. Intuition draws upon your experience, stored knowledge and information you may not even realize you have in your head. ( Example: You must “practice what you preach” or you will have little credibility. (9) Teamwork: Insist on mutual respect, courtesy and cooperation among your people. This fundamental attitude was crucial in shaping our nation and is also essential to build your company. (10) Authority: Remember that authority is not vested in your position as “the boss.” Authority resides with the people who report to you and they have the power grant it to you or not.

14: Having Fun
People like to work in an environment that is enjoyable; they can get burned out if the work environment is totally serious and strictly business. Great companies like Southwest Airlines have come up with creative ways for employees to have fun. If you’re not naturally good at getting people to have fun, designate a key employee to assume this role and be your official or unofficial cheerleader. =============================================== .

Staff Training and Motivation at McDonalds
After having discussion wth the manager of Mc Donalds we came to know about the information related to staff training and motivation at Mc Donalds. McDonald trains almost 55,000 employees each year. Each year, it also dedicates over 10 million pounds to ongoing employee training, providing people with valuable skills. Employees learn how to train and supervise others. For the first time employed, McDonald's is an important "mentor', teaching the interpersonal and organisational skills necessary for functioning effectively on any job. McDonald's business demands teamwork, discipline and responsibility; McDonald's experience results in enhanced communications skills as well as greater self-confidence; and McDonald's stresses "customer care", and attitude which industry experts recognise as an essential ingredient for business success.

Management Development
Conducted at regional offices and corporate training centres across the country, McDonald's Management Development Program (MDP) continues to develop the potential leaders which the Crew Training Programme has nurtured. This is followed by a series of training courses designed to back up what is learnt in the restaurant and develop management, communication and leadership. The Basic Operations Course (BOC) equips trainee management candidates with the skills to manage their people and run successful restaurant shifts. The Advanced Operations Course (AOC) is predominantly for new restaurant managers and department heads, It aims to enhance the candidates leadership and management skills, enabling them to achieve results in all areas of the business by working through and developing their people. The MidManagement Course (MMC) goes into further leadership skills and management systems, helping these managers to effectively lead and develop their restaurant managers. These three core courses are supported by courses and seminars run by the Regional Training Centres. In addition, managers will work through the Management Development Programme (MDP) back at the restaurant. MDP gives managers at all levels the technical and functional management skills needed to maintain McDonald's

leadership role in the quick service restaurant industry.

Manager Trainee
As a Manager Trainee, you are responsible for learning and understanding McDonald's policies and procedures in order to prepare for managing shifts in a McDonald's restaurant. The responsibilities include, but are not limited to: Learning the basics of restaurant operations through on-site training, area management and floor management. Gaining experience with attaining and maintaining customer satisfaction. Developing an understanding of basic supervision, human relations, interpersonal communication and follow-up skills. Establishing an Individual Development Plan to help focus on personal career development objectives. Ensuring that a respectful workplace exists in the restaurant. From Manager Trainee you will move to the Second Assistant Manager position where you actually begin to apply the skills you have learned as a Manager Trainee.

Second Assistant Manager
As a Second Assistant Manager, you are responsible for managing people, products and equipment to execute outstanding Quality, Service, Cleanliness and Value (QSC&V) on all assigned shifts. The responsibilities include, but are not limited to: Developing and training crew employees. Maintaining critical standards for product quality, service speed & quality, cleanliness & sanitation. Managing shifts and/or areas without supervision . Ensuring all safety, sanitation and security procedures are executed.

Controlling food components, labour, waste and cash while managing shifts and or areas. Completing all assigned shift paperwork. Ensuring that a respectful workplace exists in the restaurant. The next level of restaurant management is the First Assistant Manager. Herte you will explore the business skills involved with managing a restaurant.

First Assistant Manager
As a First Assistant Manager, you are responsible for assisting the Restaurant Manager in executing virtually all aspects of the restaurant operations. The responsibilities include, but are not limited to: Demonstrating and reinforcing the leadership behaviours and basic people standards necessary to gain commitment from crew and other shift managers. Recruiting, staffing, scheduling and retaining employees. Managing the development and training of crew and shift management employees. Building sales and controlling costs to deliver optimum business results for all areas of accountability. Maintaining critical standards for product quality, service speed and quality, cleanliness and sanitation. Controlling assigned profit and loss line items. Ensuring that a respectful workplace exists in the restaurant. The next level of restaurant management is the Restaurant Manager. Your performance and available positions will determine the time frame for progression from First Assistant Manager to Restaurant Manager.

Restaurant Manager

As a Restaurant Manager, you are responsible for the entire operation of a single McDonald's restaurant, including: Developing and training Assistant Managers. Measuring external customer satisfaction and executing plans to increase brand loyalty. Implementing and conducting in-restaurant new products and procedures. Ensuring execution of all security, food safety and maintenance of the restaurant. Projecting and controlling accurate profit & loss line items. Administering all in-restaurant records and procedures including benefits, payroll, inventories, security and employee personnel flies. Ensuring that a respectful workplace exists in the restaurant. Opportunities beyond the Restaurant Manager position are also available based on interest and performance. These opportunities are as follows: Operations Consultant Provide leadership, coaching and direction to assigned restaurants. Maximize long-term sales and profit potential of each restaurant. Build a positive business relationship with Restaurant Managers and Restaurant Leadership Team Training Consultant Conduct training that motivates and improves individual's performance and contribution to restaurant results. Serve as operations expert and consultant on McDonald's operation standards, management tools and training systems.

Business Consultant Consult to an assigned group of franchisees to optimize sales, QSC, profit, and people development. Assist with maximizing the business potential for the franchisee organization. Human Resources Consultant Provide leadership and support to the operations team, regional staff and franchisees on Recruiting and Staffing Management/Crew Employees, Employee Relations, Management Development, Diversity Development, Benefits/Compensation and Management/Crew Retention systems. Management Programs are also available for personal development, which will prepare you for each step along the way. These opportunities are as follows:

 Shift Management Program When you experience the Shift Management Program, you will receive instruction through a combination of self-study modules and on-the-job coaching. You'll also participate in the Basic Shift Management Course and the Advanced Shift Management Course, which are offered by the Regional Training Department. The Shift Management Program assists you in developing and sharpening management skills in: Area Managements Food Safety Basic People Skills Respectful Workplace Delivering QSC&V

Customer Satisfaction and Customer Recovery Shift Management Coaching and Counselling Valuing Diversity Understanding the Business  McDonald's Internal Seminars Seminars are designed to establish a common foundation of leadership and management knowledge and skills for McDonald's officers. These seminars will focus on key business issues identified by senior management and create a platform for effective implementation of strategic business initiatives. A team of McDonald's senior management and external providers lead the seminars sessions. The external providers are recognized leaders in their area and have extensive experience consulting with and teaching executives.

Types of Conflict Within the Business
By evaluating a conflict according to the five categories below -- relationship, data, interest, structural and value -- we can begin to determine the causes of a conflict and design resolution strategies that will have a higher probability of success. There are many types of reasons why conflicts may happen between Human Resources Functions, such as; • Relationship Conflicts

Relationship conflicts occur because of the presence of strong negative emotions, misperceptions or stereotypes, poor communication or miscommunication, or repetitive negative behaviours. Relationship problems often fuel disputes and lead to an unnecessary escalating spiral of destructive conflict. Supporting the safe and balanced expression of perspectives and emotions for acknowledgment (not agreement) is one effective approach to managing relational conflict.

Data Conflicts

Data conflicts occur when people lack information necessary to make wise decisions, are misinformed, disagree on which data is relevant, interpret information differently, or have competing assessment procedures. Some data conflicts may be unnecessary since they are caused by poor communication between the people in conflict. Other data conflicts may be genuine incompatibilities associated with data collection, interpretation or communication. Most data conflicts will have "data solutions."

Interest Conflicts

Interest conflicts are caused by competition over perceived incompatible needs. Conflicts of interest result when one or more of the parties believe that in order to satisfy his or her needs, the needs and interests of an opponent must be sacrificed. Interest-based conflict will commonly be expressed in positional terms. A variety of interests and intentions underlie and motivate positions in negotiation and must be addressed for maximized resolution. Interest-based conflicts may occur over substantive issues (such as money, physical resources, time, etc.); procedural issues (the way the dispute is to be resolved); and psychological issues (perceptions of trust, fairness, desire for participation, respect, etc.). For an interest-based dispute to be resolved, parties must be assisted to define and express their individual interests so that all of these interests may be jointly addressed. Interest-based conflict is best resolved through the maximizing integration of the parties' respective interests, positive intentions and desired experiential outcomes. • Structural Conflicts

Forces external cause structural conflicts to the people in dispute. Limited physical resources or authority, geographic constraints (distance or proximity), time (too little or too much), organizational changes, and so forth can make structural conflict seem

like a crisis. It can be helpful to assist parties in conflict to appreciate the external forces and constraints bearing upon them. Structural conflicts will often have structural solutions. Parties' appreciation that a conflict has an external source can have the effect of them coming to jointly address the imposed difficulties.

Value Conflicts

Value conflicts are caused by perceived or actual incompatible belief systems. Values are beliefs that people use to give meaning to their lives. Values explain what is "good" or "bad," "right" or "wrong," "just" or "unjust." Differing values need not cause conflict. People can live together in harmony with different value systems. Value disputes arise only when people attempt to force one set of values on others or lay claim to exclusive value systems that do not allow for divergent beliefs. It is of no use to try to change value and belief systems during relatively short and strategic mediation interventions. It can, however, be helpful to support each participant's expression of their values and beliefs for acknowledgment by the other party. • Working Hours

One functions working hours may be flexible than another functions working hours, the employees are prone to complain as they want more flexible working hours as well. • Technology

Ther e may conflicts between different functions technology wise in a sense that one function may get better technology than another function, e.g. one function within human resources may get the newest state-of-the-art computers so they will be able to work more efficiently, as opposed to another function who may have computers which are 4 or 5 years old so they will not be able to work as efficiently, so the will complain and the business as a whole will not work as efficiently.

Placement & Selection

Placement and selection are both important factors to be considered when assessing conflicts between human resources. This can be caused by a many number of things such as, if a new employee has been recruited into the business and as soon as he starts work the business puts him as a manager, but there has been someone there working with the business for 20 years and has worked his way up the hierarchy to become assistant manager to the manager before and was looking to fill in the place of manager but this new recruit has just filled that place, the business will expect them to work together, but they will be conflicts between the two managers.

Wages One-function employees might get paid more for the same job that another functions employees are doing. This will cause friction between the functions as pay is a high motivation factor in how efficiently the staff work. Training/Costs Training and costs are a major conflict factor as they contribute a lot to the efficiency of the function, for example if a function has better training and training facilities they will be able to work more efficiently. As apposed to a function who has little money to spend on training and bad training facilities, this will result in poor training throughout the function and poor efficiently. Performance Management Performance management is the systematic process by which an agency involves its employees, as individuals and members of a group, in improving organizational effectiveness in the accomplishment of agency mission and goals. The revisions made in 1995 to the Government wide performance appraisal and awards regulations support sound management principles. Great care was taken to

ensure that the requirements those regulations establish would complement and not conflict with the kinds of activities and actions practiced in effective organisations as a matter of course. Planning In an effective organization, work is planned out in advance. Planning means setting performance expectations and goals for groups and individuals to channel their efforts toward achieving organizational objectives. Getting employees involved in the planning process will help them understand the goals of the organization, what needs to be done, why it needs to be done, and how well it should be done. The regulatory requirements for planning employees' performance include establishing the elements and standards of their performance appraisal plans. Performance elements and standards should be measurable, understandable, verifiable, equitable, and achievable. Through critical elements, employees are held accountable as individuals for work assignments or responsibilities. Employee performance plans should be flexible so that they can be adjusted for changing program objectives and work requirements. When used effectively, these plans can be beneficial working documents that are discussed often, and not merely paperwork that is filed in a drawer and seen only when ratings of record are required. Monitoring In an effective organization, assignments and projects are monitored continually. Monitoring well means consistently measuring performance and providing ongoing feedback to employees and work groups on their progress toward reaching their goals. Regulatory requirements for monitoring performance include conducting progress reviews with employees where their performance is compared against their elements and standards. Ongoing monitoring provides the opportunity to check how well employees are meeting predetermined standards and to make changes to unrealistic or problematic standards. And by monitoring continually, unacceptable performance can be identified at any time during the appraisal period and assistance provided to address such performance rather than wait until the end of the period when summary rating levels are assigned.

DEVELOPING In an effective organization, employee developmental needs are evaluated and addressed. Developing in this instance means increasing the capacity to perform through training, giving assignments that introduce new skills or higher levels of responsibility, improving work processes, or other methods. Providing employees with training and developmental opportunities encourages good performance, strengthens job-related skills and competencies, and helps employees keep up with changes in the workplace, such as the introduction of new technology. Carrying out the processes of performance management provides an excellent opportunity to identify developmental needs. During planning and monitoring of work, deficiencies in performance become evident and can be addressed. Areas for improving good performance also stand out, and action can be taken to help successful employees improve even further. RATING From time to time, organizations find it useful to summarize employee performance. This can be helpful for looking at and comparing performance over time or among various employees. Organizations need to know who their best performers are. Within the context of formal performance appraisal requirements, rating means evaluating employee or group performance against the elements and standards in an employee's performance plan and assigning a summary rating of record. The rating of record is assigned according to procedures included in the organization's appraisal program. It is based on work performed during an entire appraisal period. The rating of record has a bearing on various other personnel actions, such as granting withingrade pay increases and determining additional retention service credit in a reduction in force, although group performance may have an impact on an employee's summary rating, a rating of record is assigned only to an individual, not to a group.

Rewarding In an effective organization, rewards are used well. Rewarding means recognizing employees, individually and as members of groups, for their performance and acknowledging their contributions to the agency's mission. A basic principle of effective management is that all behaviour is controlled by its consequences. Those consequences can and should be both formal and informal and both positive and negative. Good performance is recognized without waiting for nominations for formal awards to be solicited. Recognition is an ongoing, natural part of day-to-day experience. A lot of the actions that reward good performance - like saying "Thank you" - don't require a specific regulatory authority. Nonetheless, awards regulations provide a broad range of forms that more formal rewards can take, such as cash, time off, and many no monetary items. The regulations also cover a variety of contributions that can be rewarded, from suggestions to group accomplishments. Managing Performance Effectively In effective organizations, managers and employees have been practicing good performance management naturally all their lives, executing each key component process well. Goals are set and work is planned routinely. Progress toward those goals is measured and employees get feedback. High standards are set, but care is also taken to develop the skills needed to reach them. Formal and informal rewards are used to recognize the behaviour and results that accomplish the mission. All five-component processes working together and supporting each other achieve natural, effective performance management.

THEORIES OF MOTIVATION Writers such as FW Taylor (1856 - 1915) believed workers would be motivated by obtaining the highest possible wages through working in the most efficient /

productive way. In short, the more money you offer the worker, the more motivated they will be to work. Taylor, identified as the Father of Scientific Management, was obsessed with optimising efficiency and productivity in all areas of life. (Whilst out walking he would attempt to ascertain the optimum length of stride required to cover a distance!). His most well known research focused on scientifically analysing the tasks performed by workers, and it is through these studies that we can understand Taylor's approach to motivation of the worker. Through the scientific study of work Taylor sought to enable the worker to achieve the maximum level of output, and in return gain the maximum financial reward for their labour. The best way to pay a worker according to Taylor was on a performance related basis. In one study he looked at the work of steel workers, and by identifying the optimum load of coal per shovel, which would enable the worker to lift the maximum tonnage each day, the steel works plant reduced its workforce from 600 to 140. The reward for those workers lucky enough to keep their jobs - 60% higher wages if they met their scientifically calculated targets for the week, by following the instructions laid down by Taylor, on how to do their jobs. Unfortunately, the way in which Taylor appeared to view the 'worker' as just a pair of hands, and the job losses, which seemed to follow him round the companies he advised, labelled Taylor as 'The Enemy of the Worker'. In truth, F.W.Taylor only sought to enable the worker to reach their full earning potential, and honestly believed his work was in the best interests of the worker. Subsequent motivational theorists have pointed to Taylor's limited appreciation of the fact that 'workers' are you and me - people, complex individuals, with heads and hearts - and not just simple pairs of hands. This said, Taylor's ideas are just as prevalent today as they were in the early 1900s, consider the current wave of dot.com start-ups, which offer large share options to their staff, and thus the potential for huge financial rewards in the future, if they work hard now. There is no escaping the fact that money is still a central reason why people work, but is it the key to motivating people. Abraham.H.Maslow published 'A Theory of Human Motivation' in 1943. In this work

he argued that people are wanting / needing beings. As such we always want more, and what we want depends on what we already have. Maslow suggested human needs can be arranged into series of levels, a hierarchy of importance.

CONCLUSIONS AND RECOMMENDATIONS AFTER HAVING DISCUSSION WITH THE MANAGERS AND EMPLOYEES WE CAME TO CERTAIN CONCLUSION WHICH ARE AS FOLLOWS: CONCLUSIONS/IMPLICATIONS Indian food market has witnessed several entrants into the country over the past few years. Each of the established food chains and the ones entering the market pose a threat to each other. In the food market each restaurant faces competition from 1000 other restuarants, it could be a 5-star restaurant or a roadside dhaba. In order to prove itsef, the restaurant has to have a well-defined marketing strategy and famous brand recognition to survive in the market. To have a competent edge with its competetiors Mac Donald has recently merged with coca cola Georgia brand to serve hot beverages.So that they can always known for there uniqueness. The three fast food chains whose marketing strategies have been compared and analysed also need to look on their marketing strategies to do more than just survive in the market (Certain recommendations have been put forth in the coming pages). The atractiveness of the three restaurant chains in the fast food market can be judged from the following factors : • Existing Competition The Indian food market today has many established global chains who have opened their restaurants at major cities in the country. It is only those restaurants who have built their image over many years in the country i.e., Nirulas and world famous brands such as McDonald’s are the ones to sustain themselves in the market. Any other restaurant below this calibure would not have the power to fight these joints. Nirulas has the power to fight competition because it is not identical to the MNC chains and has not duplicated their policies. Also as long as it continues to deliver value to its customers it is unlikely to feel the heat of competition. McDonald’s however is new to the market but in a short period of time it has built a place for itself in the market by reaching the maximum number of audience in almost all income groups. Wimpy’s

however will have problems competing with the multinational burger chains come into the market. • Substitutes Available There are end number of substitutes available to the customer for fast food in the market. The customer can choose from traditional Indian cuisine to spciality cuisine such as Chinese, Italian, Thai etc. For the three fast food joints there must be more than a thousand restaurants to choose from as substitutes. Even Wimpy’s burger could be a subtitute for Nirulas Pizza or vice versa. It all depends on the choice of the customer of what he wants to have. • Likely New Competition Looking at the changing lifestyles and the disposable income of the middle class increasing, the food market has enormous potential. Wimpy’s definately will have problems in the future if new multinational burger chains enter into the market. With this its market share will fall and it could even become a non-player in the near future. McDonald’s with its “purchasing power pricing” policy however has dominated the middle class segment in the market. Untill and unless some chain with the same policy attacks the market, McDonald’s does not have any threat from new burger chains entering the market. For Nirulas however it is the variety and the location factor which can save the chain from new competition.

RECOMMENDATIONS
THERE ARE CERTAIN RECOMMENDATION WHICH WE ARE PROVIDING AND ARE GIVEN BELOW.

For the purpose and growth of Mc Donald fast food restaurant & Employees satisfaction certain follows:recommendation are significant. weTO achieve an apex position few vital suggestions for higher level of employees satisfaction , are as

McDONALD’S
1.MOTIVATION AND SATISFACTION . Performance appraisal can have a profound effect on levels of employee motivation and satisfaction - for better as well as for worse. Performance appraisal provides employees with recognition for their work efforts. The power of social recognition as an incentive has been long noted. In fact, there is evidence that human beings will even prefer negative recognition in preference to no recognition at all. If nothing else, the existence of an appraisal program indicates to an employee that the organization is genuinely interested in their individual performance and development. This alone can have a positive influence on the individual's sense of worth, commitment and belonging. The strength and prevalence of this natural human desire for individual recognition should not be overlooked. Absenteeism and turnover rates in some organizations might be greatly reduced if more attention were paid to it. Regular performance appraisal, at least, is a good start. 2. Training and Development Performance appraisal offers an excellent opportunity - perhaps the best that will ever occur - for a supervisor and subordinate to recognize and agree upon individual training and development needs. During the discussion of an employee's work performance, the presence or absence of work skills can become very obvious - even to those who habitually reject the idea of

training for them! Performance appraisal can make the need for training more pressing and relevant by linking it clearly to performance outcomes and future career aspirations. From the point of view of the organization as a whole, consolidated appraisal data can form a picture of the overall demand for training. This data may be analyzed by variables such as sex, department, etc. In this respect, performance appraisal can provide a regular and efficient training needs audit for the entire organization. 3. Recruitment and Induction Appraisal data can be used to monitor the success of the organization's recruitment and induction practices. For example, how well are the employees performing who were hired in the past two years? Appraisal data can also be used to monitor the effectiveness of changes in recruitment strategies. By following the yearly data related to new hires (and given sufficient numbers on which to base the analysis) it is possible to assess whether the general quality of the workforce is improving, staying steady, or declining. 4. Employee Evaluation Though often understated or even denied, evaluation is a legitimate and major objective of performance appraisal . But the need to evaluate (i.e., to judge) is also an ongoing source of tension, since evaluative and developmental priorities appear to frequently clash. Yet at its most basic level, performance appraisal is the process of examining and evaluating the performance of an individual. Though organizations have a clear right - some would say a duty - to conduct such evaluations of performance, many still recoil from the idea. To them, the explicit process of judgment can be dehumanizing and demoralizing and a source of anxiety and distress to employees. It is been said by some that appraisal cannot serve the needs of evaluation and development at the same time; it must be one or the other.

But there may be an acceptable middle ground, where the need to evaluate employees objectively, and the need to encourage and develop them, can be balanced.

APPRAISAL PROCESS
Many organizations make every effort to approximate the ideal process, resulting in first-rate appraisal systems.

PERFORMANCE APPRAISAL
An organization’s goal can be achieved only when people put in their best efforts. How to ascertain whether an employee has shown his or her performance on a given job? The answer is performance appraisal.

HISTORY OF PERFORMANCE APPRAISAL

The history of performance appraisal is quite brief. Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies. But this is not very helpful, for the same may be said about almost everything in the field of modern human resources management appraisal.

There is, says, "... a basic human tendency to make judgments about those one is working with, as well as about oneself."

Appraisal, it seems, is both inevitable and universal. In the absence of a carefully structured system of appraisal, people will tend to judge the work performance of others, including subordinates, naturally, informally and arbitrarily. The human inclination to judge can create serious motivational, ethical and legal problems in the workplace. Without a structured appraisal system, there is little chance of ensuring that the judgments made will be lawful, fair, defensible and accurate. In simple terms, performance appraisal may be understood as the assessment of an individual’s performance in a systematic way, the performance being measured against such factors as job knowledge, quality and quantity of output, initiative, leadership abilities, supervision, dependability, co-operation, judgment, versatility, health, and the like. Assessment should not be confined to past performance alone. Potentials of the employee for future performance must also be assessed.

DEFINITIONS OF PERFORMANCE APPRAISAL

A formal definition of performance appraisal is:

It is systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development.

Performance appraisal is a formal, structured system of measuring and evaluating an employee’s job related behaviors and outcomes to discover how and why the

employee is presently performing on the job and how the employee can perform more effectively in the future so that the employee, organization, and society all benefits.

The other terms used for performance appraisal are: performance rating, employee assessment, employee performance review, personnel appraisal, performance evaluation, employee evaluation and merit rating. In the formal sense, employee assessment is as old as the concept of management, and, in an informal sense, it is probably as old as mankind.

RELATIONSHIP OF PERFORMANCE APPRAISAL AND JOB ANALYSIS

Performance appraisal is not done in isolation. It is linked to job analysis as shown in figure:

Job analysis

Performance standards

Performance appraisal

Job analysis sets out requirements, which are translated into performance standards, which in turn form the basis for performance appraisal.

OBJECTIVES OF PERFORMANCE APPRAISAL

Data relating to performance assessment of employees are recorded, stored, and several purposes. The main purposes of employee assessment are:

1. To effect promotions based on competence and performance. 2. To confirm the services of probationary employees upon their completing the probationary period satisfactorily. 3. To assess the training and development needs of employees. 4. To decide upon a pay raise where (as in the unorganized sector) regular pay scales have not been fixed. 5. To let the employees know where they stand insofar as their performance is concerned and to assist them with constructive criticism and guidance for the purpose of their development. 6. To improve communication. Performance appraisal provides a format for dialogue between the superior and the subordinate, and improves understanding of personal goals and concerns. This can also have the effect of increasing the trust between the rater and the rate. 7. Finally, performance appraisal can be used to determine whether HR programs such as selection, training, and transfers have been effective or not.

BENEFITS OF PERFORMANCE APPRAISAL

Perhaps the most significant benefit of appraisal is that, in the rush and bustle of daily working life, it offers a rare chance for a supervisor and subordinate to have "time

out" for a one-on-one discussion of important work issues that might not otherwise be addressed. Almost universally, where performance appraisal is conducted properly, both supervisors and subordinates have reported the experience as beneficial and positive.

Appraisal offers a valuable opportunity to focus on work activities and goals, to identify and correct existing problems, and to encourage better future performance. Thus the performance of the whole organization is enhanced. For many employees, an "official" appraisal interview may be the only time they get to have exclusive, uninterrupted access to their supervisor. Said one employee of a large organization after his first formal performance appraisal, "In twenty years of work, that's the first time anyone has ever bothered to sit down and tell me how I'm doing." The value of this intense and purposeful interaction between a supervisors and subordinate should not be underestimated.

• Total Quality Management- To Energize and motivate the employees , Mac Donald can Organised a Total Quality Management Programmee.

APPENDIX QUESTIONNAIRE:

1. What motivates you working in MC Donald.? a) salaries b) working conditions c) Other

2. Are you satisfied with your salaries? a) Yes b) No

3. Given a chance in which company would you like to work? a) Still at MC- Donalds b) Yo China c) Pizza Hut

4. Do you get incentives? a) Yes b) No 5. Which type of incentives do you get? a) job assurance b) different types of perks c) cash incentives

6. Are you satisfied with the working environment? a) Yes b) No

7. How is your relationship with the manager? a) Very good b) Good c) Average

8. How is your relationship with your peer group? a) Very good b) Good c) Poor

9) Are you comfortable with the dress code ? a) Yes b) No

10. Do you want more leave in a year? a) Yes b) No

11. Are you satisfied with the working hours? a) Yes

b) No

12. Do you want more staff with you? a) Yes b) No

13. Do you get any offer from Mc-Donalds during the festive season? a) Yes b) No

14. Did you tried to get the job somewhere else?

a) Yes b) No

15. Have you ever think of switching over to any other company? a) Yes b) No

14. According to you which food item is mostly preferred by the customers? Specify it. _________________________________________________________

We in Mc Donalds

Machines available in Mc Donalds

REFERENCES

http://www.scribd.com/doc/21167331/Mcdonald s-Project-Report http://www.scribd.com/doc/6881272/100marksp roject http://en.wikipedia.org/wiki/McDonald's#Advert ising
www.aboutmcdonalds.com/

http://www.mcspotlight.org/case/pretrial/factsh eet.html www.mcdonaldsindia.com www.mcdonalds.com

• •

• company’s annual report

BIBLIOGRAPHY

• Brand Practices • Magazines: Business world 100 top Brands The valuable brands of India

• Human Resource Management: C.B.Gupta • Personnel Management: Monappa and Saiyadain

GLOSSARY: Absenteeism
noun the practice of regularly staying away from work or school without good reason

consolidated
make (something) physically stronger or more solid : the first phase of the project is to consolidate the outside walls.

Legitimate
adjective conforming to the law or to rules : his claims to legitimate authority.

Appraisal
noun an act of assessing something or someone : treatment begins with a thorough appraisal of the patient's condition | the report has been subject to appraisal

INDEX:
1. Title Page 2. Preface 3. Acknowledgement

4. Table of Contents 5. Introduction 6. An Overview   History and Background Worldwide Operations

7. About Mc Donalds India  A Locally Owned Company       Local Sourcing is key for truly Indian Products Setting up of an exclusive food chain Respect for the Indian customers and culture An employer of opportunity Quality, Services, Cleanliness and Value Community Partnership

8.Organisational Culture 9.Charactersticks of McDonalds Culture 10.Management Hierarchy 11.Management role in sustaining competitive advantage 12.Steps taken by McDonald to motivate and retain employees 13.Conclusions 14.Recommendations 15.Appendix

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