CONTENTS

INTRODUCTION HUMAN RESOURCE ANALYSIS JOB ANALYSIS PLANNING AND FORECASTING RECRUITMENT SELECTION TRAINING DEVELOPMENT PERFORMANCE APPRAISAL COMPENSATION INCENTIVES BENEFITS EMPLOYEE RELATIONS CONCLUSION AND SUGGESTIONS

cleanliness. service. so that we make every customer in every restaurant smile. strengths and assets of diversity around the globe in order to be our customers’ favorite place and way to eat. VISION STATEMENT The McDonald’s System leverages the unique talents. and value. cleanliness and value every time.INTRODUCTION McDonald’s brand is the leading global foodservice retailer with more than 30. 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. Being the best means providing outstanding quality. service.000 local restaurants serving almost 50 million people in 120 countries each day. 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 . The business was started in 1940 by two brothers DICK and MAC MCDONALD in San Bernardino.

.  SUPPORTIVE – Co-operative and helping other managers in their work.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. 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. 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. FUNCTIONS OF HR IN MCDONALDS The functions of HRM in McDonald’s are:  POLICY-MAKING . 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.  WELFARE . And from there onwards the opportunities for growth and development are limitless Area Supervisors. developing and evaluating employees so that they can have a share in the organization’s affairs. Employees are the most important resources in McDonald's. providing opportunity to start and excel the career with the core business functions. Operations Consultant and beyond are just a few to mention from. CUSTOMER CARE REPRESENTATIVE This is an exciting career opportunity for the females. etc. motivating. people. TRAINEE MANAGER This is an entry level managerial position at McDonald's restaurant.Acting as an intermediary between different groups and interests. from Crew Member to Crew Leader to Floor Manager to Assistant Manager to Restaurant Manager. McDonalds conducted job analysis in order to hire new employees at every year that sometimes on quarterly basis.Concerned with looking after people at McDonald's and their needs. Trainee managers handle various areas of professional excellence where sales.  BARGAINING AND NEGOTIATING .  ADMINISTRATIVE – Responsible for pay rate system and supervision implementation of health and safety laws. JOB ANALYSIS METHOD IN MCDONALDS In job analysis McDonalds focuses on Work Activities and Human Behaviors of an employee for a job. All managers therefore take on human resource responsibilities. JOB ANALYSIS McDonalds has many employees who are working on different posts and are working hard according to their own capacity. there is a clearly defined career path. particularly in creating a competitive edge. product safety and security are the minimum areas to be mentioned.Establishing major policies that cover the place and importance of people in McDonald's.

Depending upon the knowledge. working conditions and job hazards. INITIAL ENTRY LEVEL This entry level is specifically for beginners to start the career in a professional work culture. purpose. At McDonald’s office jobs are an excellent match. For the MANAGERIAL JOBS McDonalds use the Questionnaire and Interview Method. 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 DESCRIPITION The job analysis is used to generate a job description. They prepare a structured Questionnaire in which they ask employees about their jobs. provided an employee can exhibit the right skill set up to excel in the areas of his/her expertise. 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. So the fun & enthusiasm prospect apart from extensive learning will make employees a key member of the team serving our customers. JOB DESCRIPTION AS PER JOBS . McDonalds use direct Observation and Interviewing together Firstly. This job is offered either as a Delivery Rider or a Crew Member. 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. such as mental or physical activities. 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 description covers the various task requirements.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. 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. The CREW MEMBERS are like main workers of the McDonalds because they are the one who handle the stage work. how they manage all the work and satisfy the kids and their parents.  Questionnaire Method. The provision of leadership approach to work will enhance their sense of ownership and part of the winning team member. skills and abilities for successful performance methods. and other responsibilities of the position. there are 3 key entry points in the office jobs. Whereas. in Interviewing they further collect the information related to job directly from employees. JOB ANALYSIS METHOD IN MCDONALDS MCDONALDS applies the basic methods of Job analysis by which HRM can determine job elements and the essential knowledge. which defines the duties of each task. MCDONALDS uses the following job analysis methods according to their jobs:  Observation Method  Interview Method. experience or other key factors. education required for the job.

3 . customer relationship  To strengthen marketing at local store level. qualities.  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 . skills and abilities needed to perform the job satisfactorily. how well an applicant matches a job opening and it should be used as the basis for recruiting. CUSTOMER CARE REPRESENTITIVES:  To maintain work standards of Customer care.28 years maximum .  To achieve agreed targets for enhancing Local Store Marketing. The job specification provides a standard against what to measure. 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 .  Perform with a strong focus toward customer orientation. JOB SPECIFICATION The job specification describes the person expected to fill a job.  To independently organize and execute various events at store level. It details the knowledge (both educational and experiential).McDonalds represent its Job Description as “Category Profile” and “Individual Competencies” OFFICE JOBS For office jobs Job Description is named as “Category Profile” I .  Have ability to work at all levels required for crew members  Work efficiently and in organized way. MIDDEL ENTRY LEVEL:  Strong interpersonal and leadership skills. 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 . CREW MEMEBERS :  Good communication skills. 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.

For this purpose McDonalds uses Qualification Inventory system. No doubt McDonalds has raised its value above mark. McDonalds forecasts its personnel needs according to what has been the trend of its sales. education. INSIDE SUPPLY OF CANDIDATES In this forecasting method Information is collected on employees already working within McDonald’s. career. They will do this on the basis of past. 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. HR requirements of McDonald's may be met by training and developing current staff rather than recruiting externally OUTSIDE SUPPLY OF CANDIDATES .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 . Provided they know what sales are likely to be. revenue and labor needs in the past. McDonalds forecasts the need of staffing employees by inside and outside supply of candidates. using available machinery and equipment. WORK STUDY TECHNIQUES Work-study specialist’s works out how long various jobs take. performance and other interests. 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. they calculate the numbers of employees required and the hours they will need to work. A Qualifications Inventory of current employees gives the thorough information about current employees’ skills.35 years maximum Gender: Male or Female RESTURANT JOBS : Job Specification is represented by “Profile” in McDonalds. For this they use two ways MANAGEMENT ESTIMATES Managers are asked to forecast their staff requirements. 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.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 .

External recruitment of McDonalds involves:  Recruiting via internet  Advertising  College Recruiting RECRUITING VIA INTERNET Now a Days Recruiting via Internet is becoming very common. making contact with those candidates.where their employees could apply for the job they also publicize it in their restaurants on Notice Boards. 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. COLLEGE RECRUITING McDonalds follow the most common method of college recruiting known as Internships because many floor base employees usually join McDonalds for internship. Also the transformations of employees within the franchises of McDonalds took place for recruiting the employees. RECRUITMENT Recruitment is the first part of the process of filling a vacancy. short listening. MCDONALDS publicize their open jobs on their site . the consideration of sources of suitable candidates. So that the working employees could be informed from the vacant position and apply. McDonalds approaches the Newspaper or a magazine adds mostly to invite employees for jobs. 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. For this McDonalds information system plays a vital role. 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. It keeps track of the economic conditions and employment rate and after that forecasts its external needs accordingly. interviews and finally induction of the selected candidates within the budget of the department company. 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. Usually at McDonalds employees are hired in a form of badge. A typical McDonald’s restaurant can employ about 60 people who include the both managerial and floor. 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. .based staff. It includes examination of the vacancy. attracting application from them. 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. In McDonalds recruitment process is decentralized. In this way McDonalds develops a pool of talent as much as possible so that it can choose best out of it. ADVERTISING Advertising is the most used method for recruitment.

knowledge and nature of work of employees. MCDONALDS TESTING FACTORS McDonalds conduct tests to know the following factors:  Motor& physical skills  Personality( attitude test)  Cognitive abilities (Aptitude and Intelligence test) . ADMINISTERING INTERVIEW: For administering the test McDonalds conducts a most common used system Panel Interview.TESTING PROCEDURE McDonalds always want a multi-skilled worker or employee who could work efficiently at any level. 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. 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. This is where the final and overall assessment of the candidate takes place and selection decisions are made. In this interview a panel or group of executives or senior . Here questionnaires are prepared according to the job requirements. 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. 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. 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. 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. where the McDonalds managers could evaluate them more accurately. TESTING TESTING EMPLOYEES IN MCDONALDS McDonalds take the following tests to check the abilities. PANEL INTERVIEW: McDonalds take panel interview. INTERVIEW CONTENT: McDonalds has a set interview content known as Situational Interview.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.

They are trained to work on floor base area to back area.  Employees get at least 6 months of time to show their skills and knowledge. specification. and a guideline that how to work and what are the job requirements and procedures. 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. ON-THE-JOB TRAINING . employees know that working at McDonalds provides them with a wealth of knowledge. Employees in McDonalds are trained at all levels. a job is never just a job.employees usually HR manager and head of the particular department ask situational or other basic questions from the candidate.  After that they create situational (job-related) questions for the candidate to know their capabilities.  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. duties. employees are introduced with a complete description about the job. McDonalds follow a highly structured training process. These lectures set out the company's standards and expectations for the new employees. 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. they appoint the interviewers to conduct and evaluate the interview TRAINING AND DEVELOPMENT At McDonalds. C & V) ORIENTATION As like other organization McDonalds training and development program starts from orientation.  Finally. knowledge or abilities. and requirements for a job such as skills. They also watch videos related to company’s information and handouts are also given to them. S. skills and above all a true fun work Environment.  The head of the department decides that what objectives a new incoming employee should carry out. INTERVIEW PROCEDURE In McDonalds interviewing system apply subsequent method:  First they examine the job description. present conditions.  After these 5 to 6 months orientation employees get their appointment letters as a permanent employee of McDonalds. future goals and objectives or plans of the company. experience. 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. These are usually arranged in a Training Centre or Room. McDonald's employee training programs are based on the company's core principles such as:  Quality  Service  Cleanliness  Value Abbreviated as (Q. Where. cultural values. A verbal outline is given to the employees.  In McDonald each employee works with or under a “Training Buddy” (supervisor).

It includes:  Management development plan for employees at all levels. employees and also for the workers at lower level. AUDIO-VISUAL BASED TRAINING For the new trainees McDonalds also provide them with DVDs. 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. 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. They will also attend classroombased training sessions where they will complete workbooks for quality. films. PERFORMANCE APPRAISEL Performance appraisal compares each employee’s actual performance with his or her performance standard.  McDonalds provide facilities to employees in their career planning. 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. The courses available at Hamburger University build upon the leadership competencies needed to support employees. setting work standards and then providing feedback to employees with the aim of eliminating performance deficiencies”. Owner/operators and sales growth. They match up the performance behavior of employees before training and after training like.e.  Different training courses are also arranged for the employee’s i. “Performance appraisal helps in estimating employee’s current performance. video or audio tapes related to the operational or functional work of the organization. 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.  Restaurant Managers progress their way through Shift Management and Systems Management courses while attending one of our 22 regional training centers. . managers attend Hamburger University where they learn the additional knowledge and skills they need to run a multimillion dollar restaurant.  The Mid-Management learning path at Hamburger University is for business consultants anddepartment heads. Once these courses have been completed.  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. 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 builds on their leadership and consulting skills.  The Executive Development learning path helps reinforce ongoing business and leadership skills for top management. 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”.The majority of training is floor based. Managers use job analysis to determine the job specific activities and performance standards. McDonald arranges a Summer Crash Course for their employees. It is done within the specific department so that the employee becomes familiar with all level of jobs. McDonalds has established adevelopment program for managers.

PERFORMANCE APPRAISEL METHOD McDonalds uses the Graphic Rating Scale Method for evaluating the performance appraisal of employees. rate the employee as appraised. 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. An appraisal session is also arranged for the employees. experience and after the assessment according to the rating scale. 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.PARAMETERS OF PERFORMANCE APPRAISAL The performance appraisal is based on the following some of the parameters:  Ethics  General Knowledge/ IQ.  Confidence  Motivation  Team Work  Communication Skill At McDonalds every employee is on a race to give the best performance through their knowledge. 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. in this trend wide range of jobs and salary levelsare represented by Bands. 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. . gives the pay range listed on that grade and determines his or her salary. GRAPHIC RATING SCALE METHOD Through the Graphic Rating Scale the head of the department rate the person according to the performance of its work. growth and movement. 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. knowledge. The employee is cooperative with other his/her co-workers. Rated on his/her performance that the employee is good in communication skills or not. 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. McDonalds has this system of compensation because. COMPENSATION AND BENEFITS PROGRAMS COMPENSATION METHOD McDonald uses Broad banding trend of compensation. abilities and skills. skill. whose job falls on one of these grades. 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. broad banding allows for flexibility in terms of pay. So the employee. the employee could work independently on its own.

FOR EMPLOYER: He sets salaries according to the market or could be more from market and employer get knowledge about market.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. .PRICING OF PAY GRADES This step assigns pay rates to pay grades. B. D. McDonalds pays more to their employees as compare to market. McDonalds grouped similar nature of jobs into pay grades for establishing pay rates. C. the starting salaries or other increments. in which he asks about the overtime policies or bonuses. the salary survey is necessary for establishing pay rates. for the higher level jobs such as at managerial level a formal survey is conducted by McDonalds. 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. FULL TIME EMPLOYEES: The Full Time Working Employees are given salary on monthly basis they are known as permanent employees. But McDonalds pay their employees according to the job or level. PAY RATES IN MCDONALDS McDonalds follow following steps in establishing of pay rates A. In McDonalds the employer collects the information from other employers in a form of questioners. LOWER LEVEL JOBS: For the lower level jobs like Crew Members or clerical workers McDonalds conduct a salary survey through Telephone or Internet. GRO UP SIMILAR JOBS INTO PAY GRADES After job evaluation. McDonalds through wage curve assign pay rates to part time and full time jobs according to the requirement of job. McDonalds uses Wage Curve which shows the relationship between value of the job and wage price for the job. 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. HIGHER LEVEL JOBS: Whereas. So. responsibilities and working conditions.MCDONALDS SALARY SURVEY McDonalds conduct salary survey. 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. Mangers own different higher pays as compared to worker or Crew members. For assigning pay rates to any level of job. that what other employers are paying for the same nature of job to there employees. 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 has also given its salary ranges on different jobs in their site. 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. Pay rates are necessary to define because it is better for both employer and employee. ESTABLISHMENT OF PAY RATES Why pay rates are established???? It is very difficult to set pay for any organization without conducting pay rates. skills.

McDonald's maintains the competitiveness of base pay through an annual review of both external market data and internal peer data. 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. Employees receive work experience that teaches skills and values that last a lifetime. listening for understanding and valuing diverse opinions. The Target Incentive Plan links employee performance with the performance of the business they support. They accept personal accountability. 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. skill. McDonalds price its managerial jobs as:  Base pay  Incentive pay BASE PAY: Employees' base pay is the most significant portion of their compensation. DEVELOPMENT AND PERSONAL GROWTH: Learning is the basic task of employee other than his pay. LEARNING. knowledge and experience.MCDONALDS MANAGERIAL JOBS McDonalds price their managerial jobs on the basis of their performance of work. INCENTIVE PAY: Incentive pay provides their employees with the opportunity to earn competitive total compensation when performance meets and exceeds goals. that what he or she learnt from his job. Managers and all employees of McDonalds treat with respect to their seniors or subordinators and value them. It is different for all level of managerial job. COMPETITIVE PAY AND BENEFITS Pay is the main factor of job. They coach and learn. it’s known as his or her experience. FREE FURNISHING ON HAVING NEW HOME (MANAGERIAL LEVEL): The employee’s at mostexecutive posts are given new and fully furnished home. Employees are provided the tools they need to develop personally and professionally. 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. 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. mostly pay is dependant on persons skills. experience etc . TIP pays a Bonus to top of employees in their base salaries. . They communicate openly.In McDonalds Pay is at or above local market rates and according to the vacancy offered by the organization.

COLLECTIVE BARGAINING IN MCDONALDS UNION . benefits. working or other facilities. 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). 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.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. 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. 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. 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. UMRAH PACKAGES : Special Umrah packages are given to employees at senior level. RECOGNITION PROGRAMS : McDonalds recognition programs are designed to reward and recognize strong performers.

The former CEO and Chairman of McDonalds Peter Ritchie says “Unions stifleCreativity”. values.RELATED BARAGAINING IN MCDONALDS Unions play an important role in pay-related issues. So he employee working in McDonalds is well-aware of their procedure of employee relations. Most of the time employees are not satisfied with their pays. 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). that the employee himself should demand for more pay. More precisely. MCDONALDS EMPLOYEE RELATIONS McDonalds has a comprehensible strategy of occupational health. 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. safety and security of employees. it’s often very difficult keeping them out” McDonalds has a well systematic pay rates. So they create problems. HEALTH SAFETY IN MCDONALDS McDonalds has a safe environment regarding to health. “I have had some horrible and stressful fights with union leaders. 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. culture and employee benefits or compensation programs. . although many different agreements are signed between employees and management. Like if an employee performs well his/her pay should be increased through individual bargaining.There is no such collective bargaining system is McDonalds because McDonalds don’t have a predefined labor or crew unions. this is better for employees themselves and the customers as well. 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. PAY. In McDonalds when employee is recruited they specially discuss the terms and conditions about the pays and negotiation issues on pays. “ I have spent my entire life opposing unions”. 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. 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. “there is no place for unions at McDonalds”. INSPECTION: For the hygiene of office and cooking place per month a inspector from food department visits to observe the cleanliness system. benefits and employee needs program so when a new employee comes to join McDonalds they define every single policy. But the management or managers of McDonalds believe that pay is not a subject on which employees negotiate individually. 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.

Selection. 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.  Outside area signifies that if in McDonalds any one enters and makes them HOSTAGE or Commits Bomb Blast. McDonald’s strongly believes in the . MECHANICAL SECURITY : In mechanical security system technological systems or machines are used to enhance the security system. 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. The HR department of McDonald’s fulfills all the requirements of these tasks or functions in a true sense of the meaning. Fire alarms are also placed.NO SMOKING RULE: In the office a smoking rule is obeyed for the health protection of employees and restaurant environment.When employees are hired in theitraining session they are informed with a complete description and safety measures related to their health.  Inside office means that the safety and security of office. STABILIZERS: In the case of electric short-circuit are used to retain the voltage of electricity and any mishap doesn’t take place. SECURITY GUARDS: They have security guards in their Parking Area and at the Entrance Door as well. McDonalds has Security Guards and Check Post in parking lot. is a sign of big threat to their employees and restaurant as well. Inner area of the office and outside threats. SAFETY AND SECURITY IN MCDONALDS For safety and security of employees two areas are considered such as. McDonalds has placed a scanner at their entrance door. 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. Performance. Evaluation. Also any sort of Criminal Act from employees. CHECK POST: Also a check post is placed at the Entrance of parking lot. fire extinguishers and stabilizers’ for short circuit. Compensation and certain other factors. CONCLUSION HR POLICIES AND PRACTICES OF MCDONLADS The HR polices and practices involve certain core tasks to fill such as: Recruitment. CCTV CAMERAS : CCTV cameras help McDonalds to monitor every movement of customers or any person who is in the restaurant. SCANNER: Scanners are placed at Entrance door for every customer or person to detect any metallic thing like weapons etc. 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. CCTV cameras are also fixed in and outer area of the restaurant.

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. 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. JOB DESCRIPTION AND SPECIFICATION: Well their job description and specification is not clear they have intermingled it. language. SUGGESTIONS . 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. 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. talking way and facial expression of employees.

. For higher level employees a Life-insurance policy should be made. 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. 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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