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31832471 Hr Practices Mc Donalds

31832471 Hr Practices Mc Donalds

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Published by: mansibajpai2008 on Nov 04, 2010
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so that we make every customer in every restaurant smile. and value. M ISSION STATEMENT McDonald's mission is to be the world's best quick service restaurant experience. FOUNDERS: It’s rich history began with its founder`s vision and their commitment to be peoples' favorite place and way to eat with inspired employees who delight each customer with unmatched quality. cleanliness. PRODUCTS AND SERVICES Macdonald sells the following products in order to provide their customer with good and hygienic food: PRODUCTS  Burgers  Chicken sandwiches  French fries  Soft drinks  Desserts  Salads  Breakfast items  Milkshakes  Coffee SERVICES McDonalds provides basic two services such as:  Self-Service System  Drive-In through Service . Being the best means providing outstanding quality. service. service. cleanliness and value every time. The business was started in 1940 by two brothers DICK and MAC MCDONALD in San Bernardino. VISION STATEMENT The McDonald’s System leverages the unique talents.000 local restaurants serving almost 50 million people in 120 countries each day.INTRODUCTION McDonald’s brand is the leading global foodservice retailer with more than 30. strengths and assets of diversity around the globe in order to be our customers’ favorite place and way to eat.

etc. CUSTOMER CARE REPRESENTATIVE This is an exciting career opportunity for the females. there is a clearly defined career path.  ADMINISTRATIVE – Responsible for pay rate system and supervision implementation of health and safety laws. people. particularly in creating a competitive edge. Operations Consultant and beyond are just a few to mention from. responsible to independently organize birthday events & various activities at local store level so that the challenging fun activities of the job will gear up the commitment of employees for providing the first class customer services.Establishing major policies that cover the place and importance of people in McDonald's. FUNCTIONS OF HR IN MCDONALDS The functions of HRM in McDonald’s are:  POLICY-MAKING . McDonalds conducted job analysis in order to hire new employees at every year that sometimes on quarterly basis. This also enables management to have a better understanding of the jobs and duties being performed at every level and also helps them in training the people who are freshly recruited. product safety and security are the minimum areas to be mentioned. All managers therefore take on human resource responsibilities. JOBS IN MCDONALDS McDonalds Pakistan has two types of job openings with their sub openings as listed under  Restaurant Jobs  Office Jobs RESTAURANT JOBS In the restaurant jobs. JOB ANALYSIS McDonalds has many employees who are working on different posts and are working hard according to their own capacity. motivating.Acting as an intermediary between different groups and interests. TRAINEE MANAGER This is an entry level managerial position at McDonald's restaurant. And from there onwards the opportunities for growth and development are limitless Area Supervisors.HUMAN RESOURCE MANAGEMENT IN MCDONALDS The human resource department at McDonalds is working as a separate department and holds an important place in almost all major operations of the organization but all managers across McDonald's are given responsibilities for selecting. Trainee managers handle various areas of professional excellence where sales.Concerned with looking after people at McDonald's and their needs. Employees are the most important resources in McDonald's. providing opportunity to start and excel the career with the core business functions.  BARGAINING AND NEGOTIATING . . developing and evaluating employees so that they can have a share in the organization’s affairs.  WELFARE . from Crew Member to Crew Leader to Floor Manager to Assistant Manager to Restaurant Manager.  SUPPORTIVE – Co-operative and helping other managers in their work. JOB ANALYSIS METHOD IN MCDONALDS In job analysis McDonalds focuses on Work Activities and Human Behaviors of an employee for a job.

JOB ANALYSIS METHOD IN MCDONALDS MCDONALDS applies the basic methods of Job analysis by which HRM can determine job elements and the essential knowledge. HIGHER ENTRY LEVEL The higher entry level job incumbents are accountable for the execution of assigned tactics and strategic plan. experience and right aptitude. The provision of leadership approach to work will enhance their sense of ownership and part of the winning team member. INITIAL ENTRY LEVEL This entry level is specifically for beginners to start the career in a professional work culture. The description covers the various task requirements. So the fun & enthusiasm prospect apart from extensive learning will make employees a key member of the team serving our customers. They prepare a structured Questionnaire in which they ask employees about their jobs. which defines the duties of each task. there are 3 key entry points in the office jobs. working conditions and job hazards. experience or other key factors. Whereas. how they manage all the work and satisfy the kids and their parents. education required for the job. skills and abilities for successful performance methods. JOB DESCRIPITION The job analysis is used to generate a job description. At McDonald’s office jobs are an excellent match. MIDDLE ENTRY LEVEL As a middle entry level incumbent the incoming employee will perform as a liaison with team members to deliver the team objectives while ensuring the execution of assigned tasks as per defined standards and procedures. purpose. MCDONALDS uses the following job analysis methods according to their jobs:  Observation Method  Interview Method.CREW MEMBER Crew Members are the core team members always ready to serve the customers on the floor with a shining smile unique with the services. provided an employee can exhibit the right skill set up to excel in the areas of his/her expertise. these positions will provide the opportunity to develop the skills as a successful business entrepreneur. There are three main areas of responsibility of a crew member:  Customer service  Food preparation  Cleanliness and hygiene OFFICE JOBS Managerial jobs are categorized as Office Jobs in McDonalds. JOB DESCRIPTION AS PER JOBS . they observe the work of the crew member note the information as much as they can and then for further assistance ask the crewmembers about the detail of their work. This job is offered either as a Delivery Rider or a Crew Member.  Questionnaire Method. in Interviewing they further collect the information related to job directly from employees. Depending upon the knowledge. such as mental or physical activities. For the MANAGERIAL JOBS McDonalds use the Questionnaire and Interview Method. McDonalds use direct Observation and Interviewing together Firstly. For CUSTOMER CARE REPRESENTATIVES McDonalds follow the similar Interview Technique where they ask the employees that what they feel when they work in this fun environment. and other responsibilities of the position. The CREW MEMBERS are like main workers of the McDonalds because they are the one who handle the stage work.

 Effective negotiation & problem solving skills  The ability to see the big picture while delivering organizational goals RESTAURANT JOBS For restaurant jobs the Job description is written as “Individual Competencies” 1 .  Have ability to work at all levels required for crew members  Work efficiently and in organized way. CREW MEMEBERS :  Good communication skills. how well an applicant matches a job opening and it should be used as the basis for recruiting. JOB SPECIFICATION The job specification describes the person expected to fill a job. JOB SPECIFICATIONS AS PER JOB In McDonalds the Job specification is written under heading known as “Profile” and “Competency Level” OFFICE JOBS : In office jobs it is known as “COMPENTANCY LEVEL” INITIAL ENTRY LEVEL: Education: Graduate or Post Graduate degree holders Experience: No prior experience is required for this entry position Age: 22 . MIDDEL ENTRY LEVEL:  Strong interpersonal and leadership skills. CUSTOMER CARE REPRESENTITIVES:  To maintain work standards of Customer care. customer relationship  To strengthen marketing at local store level.McDonalds represent its Job Description as “Category Profile” and “Individual Competencies” OFFICE JOBS For office jobs Job Description is named as “Category Profile” I .  To independently organize and execute various events at store level. qualities.28 years maximum . TRANIEE MANAGER:  Effective communication skills able to work in a team environment  Proactive to exhibit true managerial capability  Career oriented with focus on continuous learning  Flexibility to adapt to a diversified work culture  Customer orientation with a positive attitude towards provision of quality services 2.  To achieve agreed targets for enhancing Local Store Marketing. 3 . skills and abilities needed to perform the job satisfactorily. It details the knowledge (both educational and experiential). INTIAL ENTRY LEVEL :  Strong focus towards learning and adapting to the corporate environment  A real interest in how people drive business  Positive work attitude with the ability to lead challenging roles & responsibilities  Exposing good confidence level for delivering responsibilities at outstanding level  Innovative approach for initiating change at different levels  Strong communication skills to act as a liaison between stakeholders and team leaders II . The job specification provides a standard against what to measure.  Perform with a strong focus toward customer orientation.

using available machinery and equipment. For this they use two ways MANAGEMENT ESTIMATES Managers are asked to forecast their staff requirements. WORK STUDY TECHNIQUES Work-study specialist’s works out how long various jobs take. McDonalds forecasts its personnel needs according to what has been the trend of its sales. career. TRAINEE MANGER Qualification: Post Graduate Degree in any discipline Experience: Fresh candidates with no prior experience Age: 28 years maximum Gender: Male or Female CUSTOMER CARE REPERSENTATIVE Qualification: Graduate Degree in any discipline Experience: Fresh candidates with no prior experience McDonalds Age: 24 years maximum Gender: Females only CREW M EMBER Qualification: Intermediate Experience: Fresh candidates Age: 18-25 years Gender: Male or Female PLANNING AND FORECASTING PERSONNEL NEEDS McDonalds uses the method of “TREND ANALYSIS” for forecasting its personnel needs. McDonalds has been operating since a very long time and by now it has full information of where it stands in the minds of people. They will do this on the basis of past.32 years maximum Gender: Male or Female HIGHER ENTRY LEVE L Education: Specialized degree in the relevant field with professional certification Experience: 5 years or beyond Age: 30 . they calculate the numbers of employees required and the hours they will need to work. education. revenue and labor needs in the past. A Qualifications Inventory of current employees gives the thorough information about current employees’ skills. McDonalds forecasts the need of staffing employees by inside and outside supply of candidates. Provided they know what sales are likely to be. For this purpose McDonalds uses Qualification Inventory system. No doubt McDonalds has raised its value above mark.Gender: Male or Female MIDDLE ENTRY LEVEL: Education: Post Graduate degree holders with relevant area of specialization Experience: 3-5 years of experience in the relevant field Age: 25 . INSIDE SUPPLY OF CANDIDATES In this forecasting method Information is collected on employees already working within McDonald’s. performance and other interests. HR requirements of McDonald's may be met by training and developing current staff rather than recruiting externally OUTSIDE SUPPLY OF CANDIDATES .35 years maximum Gender: Male or Female RESTURANT JOBS : Job Specification is represented by “Profile” in McDonalds. This is a method in which the firm studies its past employment needs over a period of years to predict future needs. present and likely future requirements.

SUCCESSION PLANNING For the executive posts McDonalds follow a succession planning technique where they recruit their managers or senior employees to executive level on the basis of their performance. attracting application from them. It includes examination of the vacancy. EXTERNAL RECRUITMENT McDonald’s often goes for external recruitment though they mostly prefer internal recruitment or internal promotion of the employees to the higher posts. . RECRITMENT METHODS IN MCDONANLDS McDonalds follow the two basic types of recruitment such as:  Internal Recruitment  External Recruitment INTERNAL RECRUITMENT McDonalds uses the following two basic methods for internal recruiting  Job Positioning  Succession Planning JOB POSITIONING In Job positioning McDonalds select candidates from inside by considering their past performance. RECRUITMENT Recruitment is the first part of the process of filling a vacancy. For this McDonalds information system plays a vital role. the consideration of sources of suitable candidates. Every branch of McDonalds is independent to hire the employees.After determining the number of employees that can be obtained internally McDonalds searches for the rest from the outside. In this way McDonalds develops a pool of talent as much as possible so that it can choose best out of it. A typical McDonald’s restaurant can employ about 60 people who include the both managerial and floor. COLLEGE RECRUITING McDonalds follow the most common method of college recruiting known as Internships because many floor base employees usually join McDonalds for internship. In McDonalds recruitment process is decentralized. MCDONALDS publicize their open jobs on their site . McDonalds has its own site where they publicize for the jobs and offer people to send their CV’s through online process and often recruit employees from their. External recruitment of McDonalds involves:  Recruiting via internet  Advertising  College Recruiting RECRUITING VIA INTERNET Now a Days Recruiting via Internet is becoming very common.where their employees could apply for the job they also publicize it in their restaurants on Notice Boards. Here they have one advantage that theydon’t have to pay them much and their workforce need is also fulfilled for a temporary period of time. Also the transformations of employees within the franchises of McDonalds took place for recruiting the employees.based staff. ADVERTISING Advertising is the most used method for recruitment. It keeps track of the economic conditions and employment rate and after that forecasts its external needs accordingly. So that the working employees could be informed from the vacant position and apply. short listening. interviews and finally induction of the selected candidates within the budget of the department company. making contact with those candidates. Usually at McDonalds employees are hired in a form of badge. McDonalds approaches the Newspaper or a magazine adds mostly to invite employees for jobs.

PANEL INTERVIEW: McDonalds take panel interview. INTERVIEW CONTENT: McDonalds has a set interview content known as Situational Interview. For that when they hire employees they test according to their above mentioned criteria that the employee should be little or more skilled to work in any area. In McDonalds employees are tested in two basic ways first through some ORAL OR WRITTEN TESTS they are judged and then they are allowed to perform a PRACTICAL WORK. TESTING TESTING EMPLOYEES IN MCDONALDS McDonalds take the following tests to check the abilities. MCDONALDS TESTING FACTORS McDonalds conduct tests to know the following factors:  Motor& physical skills  Personality( attitude test)  Cognitive abilities (Aptitude and Intelligence test) . MCDONALDS TESTING METHODS McDonalds took following tests of employees:  Physical fitness test  Attitude test  Aptitude test  Case study test method  On-the-Job evaluation test INTERVIEWNG All candidates after formal testing are called for the final interview. knowledge and nature of work of employees. Here questionnaires are prepared according to the job requirements.SELECTION The selection process of McDonalds involves the following factors:  Initial screening  Testing  Interviewing  Background investigation INITIAL SCREENING In initial screening McDonalds collects the application forms of candidates from their Website online and also by Mail or Fax and than they choose those applications which are according to their job requirements and call those candidates for further process. This is where the final and overall assessment of the candidate takes place and selection decisions are made. ADMINISTERING INTERVIEW: For administering the test McDonalds conducts a most common used system Panel Interview. the managers first make a set of proper Questionnaires related to job and also predetermine their answers and ask those questions from applicants in a structured order. where the McDonalds managers could evaluate them more accurately.TESTING PROCEDURE McDonalds always want a multi-skilled worker or employee who could work efficiently at any level. MCDONLADS INTERVIEW The selection interview of McDonalds is classified it into as given classifications:  Interview format  Interview content  Interview administration INTERVIEW FORMA T : McDonalds employ Structured or Directive Interview content. In this interview a panel or group of executives or senior . they ask situational questions from their employees like give them a situation and ask their opinion that what would they do in that situation but the situations are job-related.

present conditions.  In McDonald each employee works with or under a “Training Buddy” (supervisor). knowledge or abilities. employees know that working at McDonalds provides them with a wealth of knowledge. cultural values.  Employees are formally told about what to wear their dress code or uniform  Then employees have to spend 15 to 25 days in different sub departments under one department. A verbal outline is given to the employees. These lectures set out the company's standards and expectations for the new employees. duties. specification. and a guideline that how to work and what are the job requirements and procedures. TRAINING METHODS IN MCDONALDS The most used training methods that McDonalds follow are given as:  On-The-Job Training  Job Rotation  Lectures  Audio-visual based training These training methods are often practiced by entry-level workers or crew members basically for the new employees LECTURES The first stage of training is at the Welcome Meetings. INTERVIEW PROCEDURE In McDonalds interviewing system apply subsequent method:  First they examine the job description. and requirements for a job such as skills. They are trained to work on floor base area to back area. McDonald's employee training programs are based on the company's core principles such as:  Quality  Service  Cleanliness  Value Abbreviated as (Q.employees usually HR manager and head of the particular department ask situational or other basic questions from the candidate. skills and above all a true fun work Environment.  After that they create situational (job-related) questions for the candidate to know their capabilities.  Finally.  After these 5 to 6 months orientation employees get their appointment letters as a permanent employee of McDonalds. Where. They also watch videos related to company’s information and handouts are also given to them. employees are introduced with a complete description about the job. If an interview for a most senior or executive post ahs to be done than the General Manager (GM) of the McDonalds conduct that interview. In McDonald’s employee orientation program range from 5 to 6 months and it includes such contents:  A Welcome Orientation Day is arranged for the new employees where they got familiar with the history or background of the company.  The head of the department decides that what objectives a new incoming employee should carry out. S. C & V) ORIENTATION As like other organization McDonalds training and development program starts from orientation. experience. a job is never just a job. Employees in McDonalds are trained at all levels. These are usually arranged in a Training Centre or Room. McDonalds follow a highly structured training process. ON-THE-JOB TRAINING . they appoint the interviewers to conduct and evaluate the interview TRAINING AND DEVELOPMENT At McDonalds.  Employees get at least 6 months of time to show their skills and knowledge. future goals and objectives or plans of the company.

AUDIO-VISUAL BASED TRAINING For the new trainees McDonalds also provide them with DVDs. Owner/operators and sales growth. McDonald arranges a Summer Crash Course for their employees. or "On-The-Job" training because people learn more and are more likely to retain information if they are able to practice as they learn. The courses available at Hamburger University build upon the leadership competencies needed to support employees. Once these courses have been completed. McDonalds has established adevelopment program for managers. They match up the performance behavior of employees before training and after training like. “Performance appraisal helps in estimating employee’s current performance. video or audio tapes related to the operational or functional work of the organization.  Different training courses are also arranged for the employee’s i.The majority of training is floor based. setting work standards and then providing feedback to employees with the aim of eliminating performance deficiencies”.  Transformation of employees is also carried out within the branch or in other branches. teaching individuals how to effectively operate a business and how to coach and consult with others to run great restaurants. managers attend Hamburger University where they learn the additional knowledge and skills they need to run a multimillion dollar restaurant. films. It includes:  Management development plan for employees at all levels. employees and also for the workers at lower level. PERFORMANCE APPRAISEL Performance appraisal compares each employee’s actual performance with his or her performance standard. .e. EVALUATION OF TRAINING McDonalds evaluate its training program through On-The-Job Behavior that after the training session the behavior of employees are changed or not.  The Mid-Management learning path at Hamburger University is for business consultants anddepartment heads. All new employees have an initial training period. service and cleanliness JOB ROTATION McDonalds also uses the most known type of on the job training “Job Rotation”. Managers use job analysis to determine the job specific activities and performance standards.  The Executive Development learning path helps reinforce ongoing business and leadership skills for top management.  McDonalds provide facilities to employees in their career planning.  Restaurant Managers progress their way through Shift Management and Systems Management courses while attending one of our 22 regional training centers. They will also attend classroombased training sessions where they will complete workbooks for quality. Here they are shown the basics and allowed to develop their skills to a level where they are competent in each area within the restaurant. McDonalds arrange following methods for specifically managers and employees development:  Job rotation JOB ROTATION In job rotation process the managers are allowed to work in different department or sub-department at every level to learn more about their job and identify their strong and weak points. the behavior of a crew member is more courteous to customers? The Inventory control manager is now more practical in his work and manages the inventory more systematically? DEVELOPMENT CAREER MANAGEMNT At McDonalds there are different management development plans. It is done within the specific department so that the employee becomes familiar with all level of jobs. It builds on their leadership and consulting skills.

Rated on his/her performance that the employee is good in communication skills or not. The scale lists the suitable traits or standards for the employees according to their work or job and they are rated fairly as according to their performance. The employee is cooperative with other his/her co-workers. WHY THEY USING BROADBANDING METHOD McDonalds is using broad banding method for compensation because it is the most used method by companies and it is relatively easy to handle. in this trend wide range of jobs and salary levelsare represented by Bands. the employee could work independently on its own. Graphic rating scale method involves the following traits:  Communication  Personal effectiveness/efficiency  Teamwork  Productivity  Quality of work  Reliability In McDonalds employees are rated according to these or more traits.  Confidence  Motivation  Team Work  Communication Skill At McDonalds every employee is on a race to give the best performance through their knowledge.PARAMETERS OF PERFORMANCE APPRAISAL The performance appraisal is based on the following some of the parameters:  Ethics  General Knowledge/ IQ. The productivity of work that weather he/she could work more and proper in less time and finally is the employee is reliable means he/she will work on time appropriately. gives the pay range listed on that grade and determines his or her salary. Well the graphic rating scale method which McDonalds use is a best and simplest method for thembecause employees from floor base to managerial level are rated easily. whose job falls on one of these grades. rate the employee as appraised. experience and after the assessment according to the rating scale. knowledge. So the employee. GRAPHIC RATING SCALE METHOD Through the Graphic Rating Scale the head of the department rate the person according to the performance of its work. As there are so many jobs and each job has its own description and value so by making bands of similar jobs and assigning them the appropriate salaries will make easy for McDonalds to set the pays of employees. In McDonalds the yearly appraisals of employees are done in June to July. COMPENSATION AND BENEFITS PROGRAMS COMPENSATION METHOD McDonald uses Broad banding trend of compensation. An appraisal session is also arranged for the employees. McDonalds has this system of compensation because. . PERFORMANCE APPRAISEL METHOD McDonalds uses the Graphic Rating Scale Method for evaluating the performance appraisal of employees. growth and movement. An appraisal interview in McDonalds is taken by Head of the Department only and the progress report of the employee is also in the hands of the Head of the Department. broad banding allows for flexibility in terms of pay. abilities and skills. skill.

FULL TIME EMPLOYEES: The Full Time Working Employees are given salary on monthly basis they are known as permanent employees. FOR EMPLOYEE: Similar nature of jobs categorized in groups and employee feel secure that he is getting salary according to market rate or could be more. McDonalds follows the Job Classification method of job Evaluation because they have categorized their jobs into two main classes known as:  Part Time Employees  Full Time Employees McDonalds evaluate its job on the basis of working hours of their employees more clearly for the crew members they use the part time job evaluation and for managerial level staff they use full time evaluation PART TIME EMPLOYEES: Well for part time employees MacDonald’s pay them on the basis of their working hours means hourly wages. McDonalds pays more to their employees as compare to market. PAY RATES IN MCDONALDS McDonalds follow following steps in establishing of pay rates A. . More specifically according to the job nature of employee such as for part time crew member the pay rate will be different from full time depending on their work. D. FOR EMPLOYER: He sets salaries according to the market or could be more from market and employer get knowledge about market. responsibilities and working conditions. As McDonalds uses the job classification technique so their jobs are already in a grouped form and they establish pay grades according to part time and full time jobs. C.COMPETENCY-BASED PAY McDonalds don’t apply the Competency-Based Pay Method because in this method pays are established as according to the performance of employee such as: If a crew member is working according to the level of manager his performance is equivalent to manger so their pays will be same.MCDONALDS SALARY SURVEY McDonalds conduct salary survey. skills. the starting salaries or other increments. ESTABLISHMENT OF PAY RATES Why pay rates are established???? It is very difficult to set pay for any organization without conducting pay rates. Mangers own different higher pays as compared to worker or Crew members. for the higher level jobs such as at managerial level a formal survey is conducted by McDonalds. HIGHER LEVEL JOBS: Whereas. In McDonalds the employer collects the information from other employers in a form of questioners. the salary survey is necessary for establishing pay rates. LOWER LEVEL JOBS: For the lower level jobs like Crew Members or clerical workers McDonalds conduct a salary survey through Telephone or Internet.PRICING OF PAY GRADES This step assigns pay rates to pay grades. B. McDonalds uses Wage Curve which shows the relationship between value of the job and wage price for the job. that what other employers are paying for the same nature of job to there employees. McDonalds through wage curve assign pay rates to part time and full time jobs according to the requirement of job. Pay rates are necessary to define because it is better for both employer and employee. JOB EVALUATION : The second step in establishing pay rates is evaluating jobs or JOB EVALUATION In Job Evaluation jobs are evaluated or compared with each other on the basis of qualifications. So. For assigning pay rates to any level of job. McDonalds has also given its salary ranges on different jobs in their site. GRO UP SIMILAR JOBS INTO PAY GRADES After job evaluation. McDonalds grouped similar nature of jobs into pay grades for establishing pay rates. But McDonalds pay their employees according to the job or level. in which he asks about the overtime policies or bonuses.

COMPETITIVE PAY AND BENEFITS Pay is the main factor of job. FREE FURNISHING ON HAVING NEW HOME (MANAGERIAL LEVEL): The employee’s at mostexecutive posts are given new and fully furnished home. Employees receive work experience that teaches skills and values that last a lifetime. that what he or she learnt from his job. They communicate openly. RESOURCES TO GET THE JOB DONE: It is ensured that a comfortable place to work with access to the materials.MCDONALDS MANAGERIAL JOBS McDonalds price their managerial jobs on the basis of their performance of work. McDonalds price its managerial jobs as:  Base pay  Incentive pay BASE PAY: Employees' base pay is the most significant portion of their compensation. It is different for all level of managerial job. Employees are provided the tools they need to develop personally and professionally. They accept personal accountability. INCENTIVES PROGRAMS ORGANIZATION – WIDE McDonalds has developed under given People Philosophy for compensating and motivating their employees RESPECT AND RECOGNITION Respect is one of the major factors in any organization all over the world. To the employees at all levels such basic benefits and compensation are given:  Health and Protection  Work or Life Balance  Pay and Rewards INCENTIVES FOR SENIOR MANAGEMNT McDonalds is providing different incentives to their senior managers such as: LONG TERM INCENTIVES: Long term incentives are granted to eligible employees to both reward and retain key employees whohave shown sustained performance and can impact long-term value creation at McDonald's MEDICAL AND HOSPITAL FACILITIES : It includes the some percent of compensation in the fee of hospital. McDonald's maintains the competitiveness of base pay through an annual review of both external market data and internal peer data. VALUES AND LEADERSHIP BEHAVIORS All of employees act in the best interest of the Company and tries to achieve their goal in a better way. knowledge and experience. skill. The Target Incentive Plan links employee performance with the performance of the business they support. They coach and learn. listening for understanding and valuing diverse opinions. mostly pay is dependant on persons skills.In McDonalds Pay is at or above local market rates and according to the vacancy offered by the organization. . TIP pays a Bonus to top of employees in their base salaries. experience etc . Managers and all employees of McDonalds treat with respect to their seniors or subordinators and value them. it’s known as his or her experience. LEARNING. DEVELOPMENT AND PERSONAL GROWTH: Learning is the basic task of employee other than his pay. equipment and information has been provided to do the job. INCENTIVE PAY: Incentive pay provides their employees with the opportunity to earn competitive total compensation when performance meets and exceeds goals.

these include:  Presidents' Award (given to the top 1% of individual performers worldwide)  Circle of Excellence Award (given to top teams worldwide to recognize their contributions for advancing our vision).PROVIDENT FUND (ESOP): Provident fund is given to employees as according to the companies policy mostly organizations cut 5%from the salary of the employee and he/she could take that provident fund at any time they demand. If the employees of an organization are satisfied it means that the organization could touch to the heights of success because a satisfied employee will work more passionately. CHOICE TO GET NEW CAR AFTER FIVE YEARS (COMPANY CAR PROGRAM): It is an incentive that McDonalds give to its senior employees that they could own car for their office and personal use and change the car after five years given by the company. working or other facilities. BENEFIT PROGRAMS HEALTH AND PROTECTION : Health and protection includes the following benefits:  Medical Aid  Pension or Provident Fund  Disability Cover  Funeral Cover  Accidental death & dismemberment (AD&D) WORK OR LIFE BALANCE : McDonald's believe in work and life balance and they offer the following programs to assist their employees: Annual Leave Leave of Absence Educational Assistance Employee Discount Card Staff Appreciation Days PAY AND REWARDS : McDonalds pay and reward method is fair which is as given: Highly competitive salary packages • Performance based bonus • Employee of the Month program • Annual employee recognition awards • Opportunity for local and/or international training at all levels STEPS TAKEN BY MCDONALDS TO MOTIVATE ITS EMPLOYEES McDonalds should follow these steps to keep their morale and motivation level high:  Offer the insurance for employees  Increase the wage rate  Give incentives to their employees on different events  Arrange parties just for McDonalds staff once in a month EMPLOYEE RELATIONS In any organization employee relation plays a key role. benefits. RECOGNITION PROGRAMS : McDonalds recognition programs are designed to reward and recognize strong performers. COLLECTIVE BARGAININIG Collective bargaining is a process in which employee’s union and the management negotiates with eachother and signs an agreement on the labor issues such as pays. COLLECTIVE BARGAINING IN MCDONALDS UNION . UMRAH PACKAGES : Special Umrah packages are given to employees at senior level.

RELATED BARAGAINING IN MCDONALDS Unions play an important role in pay-related issues. when McDonalds hire an employee they make every thing clear and if the employee agrees to work in such environment than they allow him to work. So they create problems. “I have had some horrible and stressful fights with union leaders. In McDonalds when employee is recruited they specially discuss the terms and conditions about the pays and negotiation issues on pays.There is no such collective bargaining system is McDonalds because McDonalds don’t have a predefined labor or crew unions. benefits and employee needs program so when a new employee comes to join McDonalds they define every single policy. that the employee himself should demand for more pay. But as in McDonald’s there are no such unions so the problem related to pay to employees would be that if a crew member do wage bargaining with employer individually In McDonalds most of the employees don’t favor for this method because they typically believe that such strategies would be:  Bad for morale  Difficult to administer  More time consuming  Encourage discrimination or favoritism Although on other hand some employees believe that it should be done on the basis of: On-the-job performance or workplace effort. because according to them they have no discretion to enter into such arrangements that involve altering individual crew or small group wages on the grounds of performance. Like if an employee performs well his/her pay should be increased through individual bargaining. Such factors could be a health and safety problem for McDonald’s employees: High temperature Hygiene Smoking Infectious disease MCDONALDS HEALTH SAFETY SYSTEM McDonalds keeping in view the above factors take the following steps ahead to prevent their employees from any health hazard: VENTILATION SYSTEM: Proper ventilation systems such as exhausts are placed so that the high temperatures don’t cause any health problem to employees who work in production lobby (cookingarea). there are no such serious health safety threats in McDonalds but they have developed a systematic health and safety program for those employees specially who work in production lobby. safety and security of employees. it’s often very difficult keeping them out” McDonalds has a well systematic pay rates. although many different agreements are signed between employees and management. HEALTH SAFETY IN MCDONALDS McDonalds has a safe environment regarding to health. The former CEO and Chairman of McDonalds Peter Ritchie says “Unions stifleCreativity”. So he employee working in McDonalds is well-aware of their procedure of employee relations. When a crew member or any lower level employee joins the McDonalds he/she have no basic knowledge of Unions. McDonald’s culture supports anti-union concept. But the management or managers of McDonalds believe that pay is not a subject on which employees negotiate individually. . values. “there is no place for unions at McDonalds”. “ I have spent my entire life opposing unions”. MCDONALDS EMPLOYEE RELATIONS McDonalds has a comprehensible strategy of occupational health. Most of the time employees are not satisfied with their pays. when they get familiar with the culture of McDonalds they become more firm at anti-union concept. but after working for a period of time. More precisely. PAY. culture and employee benefits or compensation programs. this is better for employees themselves and the customers as well. INSPECTION: For the hygiene of office and cooking place per month a inspector from food department visits to observe the cleanliness system.

INFECTIOUS DISEASES: A medical check up of employees is conducted to know that any employee doesn’t have any viral disease and if any employee becomes serious ill he/she is granted a leave so that no other employee could suffer from same problem.NO SMOKING RULE: In the office a smoking rule is obeyed for the health protection of employees and restaurant environment. McDonald’s strongly believes in the . Compensation and certain other factors. SAFETY AND SECURITY IN MCDONALDS For safety and security of employees two areas are considered such as. MECHANICAL SECURITY : In mechanical security system technological systems or machines are used to enhance the security system. McDonalds has Security Guards and Check Post in parking lot. CCTV CAMERAS : CCTV cameras help McDonalds to monitor every movement of customers or any person who is in the restaurant. STABILIZERS: In the case of electric short-circuit are used to retain the voltage of electricity and any mishap doesn’t take place. fire extinguishers and stabilizers’ for short circuit. like McDonalds has a production lobby inside their restaurant where they cook or prepare food so the danger of Fire Explosion is always there for them and as well like all other offices the threat of Electric Short-Circuit. SCANNER: Scanners are placed at Entrance door for every customer or person to detect any metallic thing like weapons etc. CCTV cameras are also fixed in and outer area of the restaurant. Also any sort of Criminal Act from employees. MCDONALDS SAFETY AND SECURITY SYSTEM McDonalds according to the above mentioned security risks use two basic facilities of security given as: Natural Security Mechanical Security NATURAL SECURITY : Natural security means securing your office architectural area. Inner area of the office and outside threats. is a sign of big threat to their employees and restaurant as well. The HR department of McDonald’s fulfills all the requirements of these tasks or functions in a true sense of the meaning. Performance. McDonalds has placed a scanner at their entrance door. Fire alarms are also placed. Selection.  Outside area signifies that if in McDonalds any one enters and makes them HOSTAGE or Commits Bomb Blast. Evaluation.  Inside office means that the safety and security of office. SECURITY GUARDS: They have security guards in their Parking Area and at the Entrance Door as well. FIRE EXTINGUISHERS : For the danger of fire explosion Fire Extinguishers and other Aid Equipments are placed in the office area and production lobby of McDonalds. CHECK POST: Also a check post is placed at the Entrance of parking lot.When employees are hired in theitraining session they are informed with a complete description and safety measures related to their health. CONCLUSION HR POLICIES AND PRACTICES OF MCDONLADS The HR polices and practices involve certain core tasks to fill such as: Recruitment.

TESTING : All over McDonalds has a good formal testing system but in our view for crew members specially who deal with customer care area a Communication Skill Testshould be taken which includes testing of accent. EVALUATION OF HR POLICIES AND PRACTICES OF MCDONALDS The policies and practices of McDonalds which we discussed above in the report are according to our literature all their strategies of HR meet up with are literature of course because during interview we asked all their HR practices according or comparing to our literature. Similarly in Job Specification they have just written general information not about the skills and personality traits. In Job Description they have written about the skills required in an employee not about the duties he/she would have to perform.well being of people and its workforce and that is one reason why it is the leader in the fast food industry and it proves that the strategies the company has chosen are right and efficient for their business. JOB DESCRIPTION AND SPECIFICATION: Well their job description and specification is not clear they have intermingled it. PLANNING AND FORECASTING: In planning and forecasting McDonalds is using trend analysis method for personnel needs but according to our opinion Computerized Forecast should be used because McDonalds is a large organization and they should estimate their need of employees through computerized system it would be easier for them. After critically evaluating the HR Functions of McDonald’s we recommend the following suggestions according to the each section of HR: JOB ANALYSIS: For job analysis we recommend that McDonalds should also include Performance Standards and Human Requirements which would help them more in making job description and specification. talking way and facial expression of employees. SUGGESTIONS . language.

COMPENSATION & BENEFITS: For the employees at lower level like crew members. .INTERVIEW: McDonalds should also ask Behavioral Questions from the candidates so by knowing their past experience they could judge their attitude and mental abilities more accurately. For higher level employees a Life-insurance policy should be made. a proper Medical Check-up after every month should be provided to them and their pays should be increased comparing to the economic conditions of country.

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