McDonald¶s is one of the world's most well-known and valuable brands and holds a leading share in the globally branded quick service restaurant segment of theinformal eating-out market in virtually every country and the leading global foodservice retailer with more than 30,000 local restaurants serving nearly 50 million people in more than 119 countries each day.
McDonald¶s vision is to be the world¶s best quick service restaurant experience. McDonald¶s Culture:McDonald¶s culture is the love towards McDonald¶s brand and the respecting the company values imbibed in its rich history.
History of McDonald¶s:y y y y y y y y Started in 1940, when two brothers, Dick and Mac McDonald opened the first McDonald¶s restaurant in California. In 1954, an entrepreneur and milkshake -mixer salesman, Ray Kroc, acquired the franchise of McDonald¶s In 1961, Kroc convinced the McDonald brothers to sell the businessrights to him for a sum $2.7milion. In 1963, the mascot Ronald McDonald was born as a part of a marketing strategy in US. Happy Meal was introduced in US in 1979. The year 1984 was marked by the death of Ray Kroc. In 1994, McDonald¶s bagged the Catalyst Award for its program for µfostering leadership development in women¶. In 1996, the first INDIAN Restaurant was opened. In 2003, the company launched the µI¶m lovin¶ it¶ campaign.
y y y y y y
Total employees = 1.5 million (398,000 company staff, 1.1 million franchisee staff) Total 2500 employees across India. 57% of staff are male 43% of staff are female Two-thirds of hourly paid staff are aged between 16 and 20 years of age 90% of staff work for 35 hours per week or less
Restaurant Leadership Programme
a. b. Diagnose and correct factors leading to poor quality food f. Develop a Restaurant Improvement Plan g. decision-making strategies and problem solving
. team-building. Use appropriate leadership approaches to develop high-performing teams and individuals b. managers. Use tools and techniques to develop teams h. manager.
2. Prepare and conduct performance reviews
The various training forums applied under MANAGEMENT DEVELOPMENT PROGRAMME:-
1. Addresses the why¶s and how to¶s of McDonald¶s procedures and standards rather than µwhat-to-dos¶ and µwhat-to-knows¶. ASM is intended for second asst.
3. Advanced Shift Management
a. Focuses on the skills and behaviors necessary to drive business results within restaurant¶s environment.
4. Deploys the manager¶s ability to observe and gather facts. QSC&V. Develop skills in leading teams d. Prioritize restaurant needs to improve people. participants learn to: a.ORGANISATIONAL BEHAVIOUR
Restaurant Operations Leadership Practice:In McDonald¶s Restaurant Operations Leadership Practices training. The BSM takes place at the management trainee level. Identify strategies to build employee commitment i. Systems Management Course
a. Recognize the importance of team building and use appropriate tools and techniques to help teams reach their full potential c. c. RLP is designed for a promotable first asst. b. b. b. profit and sales e. manager. SMC is an opportunity for first asst. Basic Shift Management
a. analyse information and then act/communicate accordingly. Includes focus on leadership skills. To gain knowledge of recognizing various real world problem within the restaurant.
6. b. c. link restaurant support tools to restaurant system and measure store and patch performance. leadership. Training Consultant Course
a. Maximize learning and performance of participants c. Operations Consultancy Course
a. How to present and facilitate training effectively b.
RESTAURANT MANAGEMENT STRUCTURE
First Assistant Manager
Second Assistant Manager Trainee Manager Trainee Floor Manager
. Participants learn how to implement problem-solving techniques with their restaurant managers. operations and consulting skills.ORGANISATIONAL BEHAVIOUR
5. Designed to help the McDonald¶s consultants develop a strong business relationship with managers. Designed for training consultants. Use of effective communication.
Systems of rewards for meeting the goals 2. he formalized the principles of Scientific Management and developed a set of ideas designed to get employees in manufacturing industries to produce more output.000 local restaurants servin nearly 50 million people in more than g 119 countries each day. Taylor contracted with companies to rearrange their production processes to simplify the tasks each employee performed. The principl s e of Scientific Management still have an important impact globally and some of the world¶s biggest companies still apply the Scientific Management principles in their business operations. Taylor. Scientific education and development of the workman 3. Taylor's concept of motivation is to institute a system of inequitable pay for workers and a bonus sy stem will create monetary incentives. McDonalds encourages employees through many effective ways which are given below:-
. precision & long working hours. As the job is intense. and requires a lot of traits such as punctu ality.
About McDonalds:McDonald¶s is one of the world's most well-known and valuable brands and holds a leading share in the globally branded quick service restaurant segment of the informal eating-out market in virtually every country and the leading global foodservice retailer with more than 30.& Taylor Theory
Taylor was the first modern efficiency expert in world history.
Scientific Management at McDonalds:Scientific Management principles in McDonald¶s business operations are implemented from three perspectives:1. Around the Twentieth Century. workers in Taylorized factories would execute the same simple tasks over and over.
McDonalds Employee Encouragement strategy using Taylor¶s principles:McDonald's employs a wide variety of techniques to keep its employees motivated. Instead of doing many different things. Standard method of performing each job.ORGANISATIONAL BEHAVIOUR
TAYLOR¶S PRINCIPLE AT MCDONALD¶S
About Frederick W.Taylor stated that the non-incentive wage systems encourage low productivity if the employee will receive the same pay regardless of how much is produced. McDonalds¶s apply the Scientific Management principles in their business operations because the company establishes systems of rewards for meeting the goals.
motivation and results are recognized and rewarded at McDonald's. whether part.ORGANISATIONAL BEHAVIOUR
Employee Of the month Strategy:Except for the base pay paid to each employee. In addition. merchandise. Therefore. Not only they establish the bonus system for the employees to perform efficiently. let them have the best performance in their work and obtain the highest efficiency farthest. and belief in. At crew level there is consider able initial and ongoing training that is consistently applied to everybody in the business.from a simple encouragement for a job well done. The company pays a bonus on top of employees' base salaries based on business performance and their individual performance.
Long Term Incentives:Long term incentives are granted to eligible employees to both reward and retain key employees who have shown sustained performance and can impact long -term creation at McDonald's. they know its value to the bottom line of their business. Taylor states that each company should train the workers scientifically rather than passively leave them to train themselves. Appreciation comes in many forms . It aims to unearth and cultivate workmen¶s endowment. hard work. etc. high requirements create high quality food. a new employee will accept training as soon as he joins McDonald's and starts his first working day. training. McDonald¶s have a strong tradition of. free food. dedication. He must pass tests of three posts in the first month. but also they institute other kinds of systems to increase monetary incentives such as recognition programs and company car program.
Incentive Programs:McDonald's also offers great incentive programs with access to gift certificates. McDonald's establish competitive wage and promotion programs. to restaurant wide recognition through programs such as the 'Employee of the Month. hourly paid staff or salaried managers undergoing their compulsory restaurant training.
Scientific Training:Scientific training is one of the most important principles of Scientific Management. full time. McDonald¶s also establish an incentive pay system and provide employees with the opportunity to earn competitive total compensation when performance meets and exceeds goals. Moreover.
Besides. they cooperate with the workers to ensure that the scientifically developed methods are being followed and it will be eligible to improve the production efficiency. Scientific Management has dramatically affected today¶s management approaches. and check the order. products become more and more plentiful. This involves the gradual substitution of science for 'rule of thumb' throughout the mechanical arts. His focus was on efficiency. updated and given a human face. production efficiency has improved. They institute bonus systems to encourage the employees to perform well to meet the goals. Nowadays people can have a rich and colourful life like a king in the past. And this one best method and best implementation can only be discovered or developed through scientific study and analysis. where in the kitchen. McDonald's establishes a series of detailed and strict working standards which ensure that every product from any chain restaurant has high quality. they train the workers scientifically rather than passively leaving them to train themselves.
. Taylor taught that there was one and only one method of work that maximized efficiency. The order is assembled by collecting food from the appropriate machines and bins. Scientific Management became a powerful force as it contributed to increased efficiency in industrial establishments. a counter person or a hall cleaner. Taylor was not really concerned with other organizational or management issues. The counter person accepts the order and typically uses a suggestive sell-up to add a missing item such as dessert. The cook time and the amounts of materials are prescribed with accurate numerical value and controlled by machines. only been modified. a company should develop a standard method of performing each job efficiently. Much of core of Scientific Management remains with us today. No matter people is a cook. Then they use the register display to confirm. The ideas generated by Frederick Taylor still have a place in current management thinking.
Stress on Production Procedure (Effectiveness & Efficient):McDonald¶s staff is specialized in different production procedure.. McDonald¶s has developed a standard method of performing each job and the employees can perform effectively and in a lot more efficient manner. Moreover. McDonald¶s shows the evidence of applying the principles of Scientific Management. Because of Taylor.ORGANISATIONAL BEHAVIOUR
Standardized Method to Improve Employee Efficiency:Lastly. and he suggested that people had to follow what his method. the holding bins will regulate the temperature to keep the food hot and fresh.
Conclusion of Taylor¶s Principle strategies:In conclusion. assemble. Also. It aims to bring everyone¶s production efficiency into full play to accomplish maximum profit. each kind of works has normative operationa l standards and written regulations. In addition. they also establish a computer system that transmits orders to the kitchen. some of the staffs play a role in the burger production and some others perform in the production of French fries.
.for example the buns. the work process and the actual food.
Application of Fayol¶s 14 principles of Administrative theory at McDonald¶s 1. Fayol believed management theories could be developed. There is one toaster-grill for each kind of bun. Division of workThe first thing one would notice in a Mc Donald¶s kitchen is the tools.ORGANISATIONAL BEHAVIOUR
APPLICATION OF FAYOL¶S PRINCIPLE AT MCDONALDS
About Henry Fayol & Fayol Theory
Henry Fayol is considered to be the father of Modern Operational Management Theory . The area is laid out for maximum efficiency and minimum movement by the worker. Fayol suggested that management is a universal human activity that applies equally well to the family as it does to the corporation. Each food item has its own machine. and one fryer for each kind of burger. having proposed that there are five primary functions of management: (1) Planning (2) Organizing (3) Commanding (4) Coordinating (5) Controlling
Application in the Modern Workplace
Fayol¶s elements of management are recognized as the main objectives of modern managers. He was one of the most influential contributors to modern concepts of management. toaster grill and trays all being one on top of the other. then tau and suggested that ght it is important to have unity of command: a concept that suggests there should be only one supervisor for each person in an organization.
2. Floor Managers and Shift Running Floor Managers all report to the branch manager and it is the branch managers job to ensure that the work is done. Party Entertainers.
Administrative Assistants. After which the ³controller´ (the employee who supplies orders to customers) collects the burger and provides it to the customers while cashiers collect the payment. they respect such rules that govern the organization.
The branch manager has full authority to give orders to the employees. second on filling the burger and the third one on taking burgers out of the grill. At restaurant level the hierarchy is: General Manager Restaurant Manager 1st Assistant Manager 2nd Assistant Manager Shift Running Manager Floor Manager Staff Training Crew Crew Members. Night Closers.ORGANISATIONAL BEHAVIOUR
In this way the job becomes very well-defined each employee knows exactly what he has to do. The Training Squad Members. Authority. Maintenance Staff. Discipline:All the employees of Mc Donald¶s have a clear understanding of there job. Security Coordinators. 3. Employees are allowed a five minute break every two hours and a half an hour break every four hours. The jobs are well-defined and they also have a clear understanding of the company¶s vision-mission statement which is to provide ³quickest and friendliest service´. For example when three people are working on Cheeseburgers one works on laying out burger.
. Dining Area Host/esses.
7. Centralization:Mc Donald¶s has a mechanistic organizational structure. Policies and procedures administration benefits. The Welcome Meeting gives an overview of the Comp any. New
. Unity of command: All the jobs in Mc Donald¶s are well-defined and streamlined such that each employee reports to a particular manager whereas all of them report to restaurant branch manager. authority is highly centralized and the tasks and rules are clearly specified. Yet every employee listens.ORGANISATIONAL BEHAVIOUR
4. communicates freely and honestly and acts in the interest of all other employees. Remuneration:Employees of Mc Donald¶s are paid on an hourly basis which is why the attrition rate is very high. Mc Donald¶s also follows the Pay and Reward policy wherein the better an employee performs the more salary he receives. hygiene and safety training. For example the information regarding maintenance would flow from:General Manager Restaurant Manager Floor Manager Maintenance Staff 5.
6. There is one toaster-grill for each kind of bun. As mentioned earlier the materials are at the right place at the right time for example the buns. and one fryer for each kind of burger. including: job role. which they must attend. toaster grill and trays are all one on top of the other. Order:Each food item has its own machine. Moreover in order to ensure that the right person is hired for the right job Mc Donald¶s ensures McDonald's inducts all new employees into the business through a Welcome Meeting.
Esprit de corps:Mc Donald¶s inculcates team spirit amongst the employees of a restaurant by providing performance ± driven incentives to branches on the basis of their performance. Equity :Managers at Mc Donald¶s treat their subordinates. Management spends a lot of time and effort in training the new recruits and is hired after an ³on the job experience´ training session. maintenance staff..e.
10. Stability of tenure of personnel:Employees of Mc Donald¶s are paid on an hourly basis which leads to high employee turnover. This promotes a feeling of harmony and unity amongst the employees.
employees also meet their trainer. and tour the restaurant. i. The company operates a 3-week probationary period. But however Mc Donald¶s pays a lot of attention to recruiting the right employees for its restaurants. 8. training staff and crew members indifferently. after which employees are rate on their d performance and are either retained or have their employment terminated.
has revolutionized the use of technology in restaurants by enabling the serving of fries and burgers in a matter of minutes. including the management along with the use of latest technology are highly integrated to accomplish their goal of being at the top in the fast food retail stores. McDonald¶s is evaluating a customer order center concept that involves drive thru orders taken by employees working remotely at two customer order centers. the company was a pioneer in the quick service chain to install the touch screen computers at the front counter and in the drive -thru. After placing their orders. customers wait until the counter personnel assemble the order and then pay the bill.ORGANISATIONAL BEHAVIOUR
APPLICATION OF SYSTEMS APPROACH THEORY
. Further more. 3. McDonald¶s had targeted service times (time from entering queue until payment completed) of 1. For years. Its standardized way of working helps the company to serve the customers with greater efficiency and at a lower cost.5 minutes. The Systems Approach is applied in McDonald¶s case at various stages of the company. McDonald¶s is also trying to reduce their waiting time. in 1990. 4.
NEW CHANGES AT MCDONALD¶S
1. High-speed data connections are used to transmit the orders from the drive -thru to the centers as well as from the centers back to restaurants¶ kitchen staff. Standardization is a key to success at McDonalds. ONE BURGER´. making it easier for servers to input orders. Its philosophy has been ³ONE WORLD. Technology has been used extensively in order to serve the customers more efficiently and effectively. The company moved from traditional way of keeping cash -registers to a modernized way of computerized-point-of sale systems that could track huge amount of data in seconds in 1970s. 2. It has a systematized way of taking the orders from its customers and processing it which finally leads to customer satisfaction.
the grills were cleaned. has a synchronized way of working for procurement. the Co. Fresh food 3. collection. McDonald's success in India had been built on four pillars:1. 2.
TRADITIONAL WAY OF WORKING AT MCDONALDS
1. US-based fast food giant. In accordance with the systems approach. 5. Not more than 5 people grilled the hamburger patties along with caramelizing the buns and dressing the sandwiches. Then the trays of buns were moved to the grill where patties were added and the sandwiches were capped. 4. Limited menu 2. storage. 7. McDonald¶s aimed to be the world¶s best quick service restaurant experience. 6. 3.ORGANISATIONAL BEHAVIOUR
SUPPLY CHAIN MANAGEMENT AT McDONALDS
McDonalds unmatched supply chain not only ensures timely delivery of raw materials and supplies to McDonalds but also helps the Co. McDonald¶s initiative to set up an efficient supply chain and deploy state-of-art technology changed the entire Indian fast food industry and raised the standards of performance to international levels. recording and reporting. Affordable price. Fast service 4. Then the completed sandwiches were placed for wrapping. After each batch. Condiments in premeasured doses were applied on the buns by a worker in the grill area and dressing was done by hands.
. Hot plates were used to heat the buns one side at a time. to save on cost and maximize profit along with maintaining highest quality standards of its products. All patties were manually seared on both sides and were removed in pairs when the light and buzzer system signaled a completed cooking cycle. inventory managemen deliveries to the restaurant and data t. 8. There were separate grills for regular-sized and quarter-pound patties.
THE BEHAVIOURAL SCHOOL OF MANAGEMENT THEORY
The behavioral school of management thought was developed because of perceived weaknesses in the assumptions of the classical school as it emphasized only on efficiency. APPLICATION MCDOANLDS In order to improve its efficiency. efficiency & goal achieving skills of an individual:OF BEHAVIOURIAL SCHOOL OF MANAGEMENT AT
. among other issues. This enables the workers to put in their best efforts and work efficiently as there is efficient communication between the workers and management. and conflict. communication. a new twist in job sharing. Behavioral science and the study of organizational behavior emerged in the 1950s and 1960s as it was a natural progression of the human relations movement. values. It focuses on issues of communicaton. motivation. and motivating and leading workers. attitudes. leadership. When the workers felt st ressed. group behavior. their family members could sign in and take each others shift. i motivation. process and principles. leadership. McDonald¶s has undertaken a program in which employees from the same immediate family can fill in for one another without clearing it with the boss. It focused on applying conceptual and analytical tools to the problem of understanding and predicting behavior in the workplace. The behavioral school focused on trying to understand the factors that affect human behavior at work. McDonald¶s merges the growth of the organization with the growth of an individual and hence extracts the best out of its employees McDonald¶s has applied the various applications of The Behavioral school of management to improve job satisfaction. interpersonal communication. It focuses on personality. and group behavior.
making process because of which there are good relations between the management and employees. 7. During peak hours. why it needs to be done. Interpersonal communication is the key to achieving cooperation among the e mployees performing related tasks. McD onalds¶ employees are versatile. McDonalds reviews their applicants¶ personality wise because after all. it is service with a smile that is being offered to the customers. That is the reason why. 2. the members of the crew are designated in areas needing assistance. insurance and other non monetary incentives given to employees.ORGANISATIONAL BEHAVIOUR
1. The regulatory requirements for planning employees' performance include establishing the elements and standards of their performance appraisal plans. another employee is making the order instantly ready and keeping the service ready without much delay which shows that work flow is well coordinated. When the kitchen is lagging behind in meeting orders employees on the floor are asked to help until normal operations is achieved.
. Individuals are motivated by social needs and good on -the-job relationships and respond better to work-group pressure than to management control activities. McDonald¶s always focuses on getting employees involved in the planning process will help them understand the goals of the organization. McDonalds also considers the importance of interpersonal relations in the day to-day operations of the company. 3. 4. 5. McDonalds extends their support to all its employees by providing them with Medicare. Mc Donald organizes ³Employee Orientation Programme´ twice every year which places a very high value on providing exceptional customer service since they recognize the importance of providing their employees with the skills and resources necessary for meeting that standard of excellence. 6. Personality traits are also considered having a relation with job satisfaction. beginning with their very first day of employment. and how well it should be done. for instance if one is at the billing counter taking orders. In case of Mc Donald all the employees are familiar with the different tasks that are involved. what needs to be done. This makes the employees feel that they are a part of the organization and that their opinion holds a lot of importance in their decision. In McDonald¶s training program the existing employees are also permitted to attend so that they become updated and familiar with the new techniques and regulations. This further motivates their performance and helps them to improve their commitment towards the organization.
8. The manager plays a vital role in the achievement of a good employeremployee relationship in the branch. a senior manager is appointed who directs the employees and the workers and leads the entire crew to work toge ther as a team rather than as individuals and also creates a friendly environment when working together.
McDonald¶s had a strong business philosophy and they successfully applied & incorporated the contemporary schools of management in their business philosophy to reap enormous benefits. McDonald has spread across the world in almost all the major cities of the globe.
McDonald¶s has implemented all the schools of scientific management to attain utmost efficiency in all spheres.
This is completely evident by the fact that McDonald¶s has achieved huge success & emerged as a pioneer in the food industry. environment & the theories of organizational behavior. people.
. it¶s pivotal for an organization not just to focus on the business and competitive strategies but also on its resources viz labour.