Human Resource Management in McDonald's

We select McDonald's to analyze its training, education and benefit through overview its history and job structure Furthermore, we compare McDonald's in US with McDonald's in China on those of standards mentioned above. Finally, we give some constructive and rationalizative suggestions.

Students' name: (Erica) (Michelle) (Candy) (Kalai) (Penny)

The Concept of HRM

What exactly is 'Human Resource Management'? Many people find HRM to be a vague and elusive concept--hot least because it seems to have a variety of meanings. This confusion reflects the different interpretations found in articles and books abort Human Resource Management, A philosophy of people management based on the belief that human resources are uniquely important to sustained business success. An organization gains competitive. advantage by using its people effectively, drawing on their expertise and Ingenuity to meet clearly defined objective .HRM is aimed at recruiting capable, flexible and committed people, managing and rewarding their performance and developing key competencies. The HRM model emphasizes: The need to search for new ways of working. The central role of managers in promoting change. The treatment of workers as individuals rather than pan of a collective work force.. The encouragement of workers to consider management. as "priers" rather than as opponents --'us and us', rather than 'us and them'.

Why is HRM Increasingly Important?

Form a Business Process Parspentive Caker and Bititci(2001) state that: "One many summarize that the 80's were all about automation .The 90's have been about people, this is evident in the development of Tom concepts throughout the 90's focusing on delegation, involvement ownership cross functional teamwork, self managed works teams and so on"' Therefore, HRM (People Management) is a critical nigh advancing the business results. 'This report Primarily focus on Human Resource Management. It shows us what the usage of human resource management and how does it work in the company. Now we know the importance of HRM. According to the teacher's requirements and after a careful research., we just take McDonald's for example to write a report about HRM at McDonald's. The information and the material mainly came from the internet, a few of them came from our textbook.. McDonald's: A case study of the face food industry(US)

Let us come to the first part : Overview 1. The Company McDonald's is the largest food service company in the world. In 1993, annual sales stood at 23 billion dollars. It is also one of biggest employers in the United States , with over half a million workers .The company has roughly 10,000 locations Which include the standard sit-in restaurants, drive through windows, and satellite sites. McDonald's dominance in the fast-food industry is not likely to disappear anytime soon. Tile Company is expanding continuously, as at December 2000, McDonald's and its franchises operated over 28,700 restaurants worldwide in 120 countries and territories, serving food and drab to over 45 million people daily: Only fifteen to twenty per cent of the restaurants are actually company-owned. The rest are franchises, run by 2,659 independent owners who pay a fee of between $400,000 and $700,000 for a franchise. McDonald's licensing department handles the

fee structure on a case by case basis, and there are a wide variety of license fees determined by property and equipment costs. A skilled franchisee can earn a sexfigure income from a single restaurant; most own 2 or more restaurants.

2. The Job structure

an1ployees of McDollald's fall into three groups restaurant workers, corporate staff, and franchise owners. The fast group is the biggest a local Mcboald's restaurant usually employs between 50 and 65 people. Company staff members work either at the corporate headquarters or at one of 40 regional offices. In the restaurants crew members constitute the entry-level position and are by far the most numerous. A large majority are part-time workers, roughly three-quarters. Their wages are low. Swing Managers constitute the first true managerial position in the hierarchy, although their hourly wages are only slightly higher than crew member wages. Assistant Managers and higher are salaried. There is one Restaurant Manager per McDonald's restaurant. According to company literature, approximately 12% of all teens currently employed in the U.S. work for McDonald's. Turnover at the crew-level employees are teenagers. The remainder includes seniors, working mothers, and "transitional" workers in the 20-25 age range. The overview above just shows us the history and the structure of McDonald's. Now come to the second pat: The McDonald brothers' first restaurant, founded in 1937. From sitting on an outdoor stool or in their cherished new autos to in indoor restaurant and from the hot dog to the Big Mao and Happy Meals, it's tremendous differences. Along the way, it built one of the world's best-known corporate icons and its most ubiquitous store. Why McDonald's becomes increasingly popular and successful? The philosophy was neatly summarized: What ever people ate, McDonald's would be the ones to sell it. Furthermore, its famous even due to its quality food and the ways of management. Here we just focus on the ways of management at McDonald's, such as training, education and benefit.

Training

Employee training at McDonald's is highly structured. Ends-level workers are first taken through the basic Crew Training System. The program consists of on-the jobtraining and is largely vocational. Each stage of advancement beyond the crew level then entails a new training program, with the skills becoming more complex and generalized. Training begins immediately with a one-hour orientation on the company. Each restaurant has its own video player and training room. Step--by --step manuals and video tapes cover every detail of the operation, everything from how to make a Big Mao to a shake. Each restaurant has 25 stations from the grill area to the front counter, Trainers use a series of checklists as new crew members move through the restaurant. A level of competency is demonstrated and the activity is checked off on the SOC-Station Observation Checklist. There is a follow-up SOC to get certified on the station. One a crew trainers has been promoted to swing manager and performed successfully, he or she is eligible for the Management Development Program. It provides technical and functional management skills for employees at the swing manager level and above. The first step is the Basic Operations Course, which takes several months to complete. It is a course Which covers fundamental restaurant opinions. The nab in the sequence is the Basic Management Course, Which teaches leaderships, time planning, and crew recognition. In the intermediate Operations Course, students are trained on crew recruitment and retention, store leadership and decision-making. The final course in this sequence is the Regional Equipment Course. Once a front-line crew member has progressed to the position of assistant managed, he or she is eligible to attend Hamburger University , the Company's world wide training center for management personnel. Approximately 2,500 managers and potential franchisees take part in the Advanced Operations Course, or AOC. The Management training curriculum at Hamburger University has been altered in scope: almost 80% of the advanced operations Course is now devoted to enhancing communication, interpersonal, and human relations skills. Teaching methods have shifted from lecture format to include role playing with video feedback and small group exercises. All managers are required to receive training from hamburger

University at least once every 5 years. New emphases include goal setting, diversity management, team building, and employee development. The company has plans for a certification program which will govern how employees progress from the crew to the level of restaurant managers. Plans are also in place for a Workplace Skills Certificate. It would be given to crew members who have mastered a set of essential workplace skills, and thus provide a "walkable credential" to enable them to move onto another position within the consumer service industry. McDonald's is a quick service restaurant business committed to 100% satisfaction. Macdonald's independent Franchisees and Company-owned restaurants serve over 22 million customers every day around the world. Each and every one of these customers deserved great services from the moment they approach the counter or drive-thru window until they leave the restaurants. We depend on the employees in the restaurant, whether employed by an independent franchises or by McDonald's Corporation, to provide a fast friendly and courteous experience to all guests so they will visit us again and again. That's why McDonald's Independent Franchisees and McDonald's Corporation look for individuals who like to have fun While delivering fast accurate and friendly service. If you are interested in becoming a part of a McDonald's Team, here are some of the duties that could be required of you.: 1. On Time, Neat and Clean: Our crewmembers are expected to report work on time, neat and clean. 2. Wash Your Hands: the most important thing crewmembers so to help make sure our customers receive safe food is to wash their hands often. 3. Skills and Training: Training will provide you with the skills you will need to perform your job. 4. Standards: Crewmembers follow standard operational procedures so customers always receive exceptional quality & service. 5. Teamwork: Our crewmembers rely on teamwork and high energy to get the job done. 6. Clean' Spotless... Tidy... sparking. Our customers expect every McDonald's will be clean. 7. Welcomed Guest: Our crewmembers make each customer feel like a welcomed guest.

8. Service: We depend on our crewmembers to deliver fast, accurate and friendly service with a smile.

Education

McDonald's is committed to the education of our youth. We all take this leadership role very seriously and work in partnership with parents and educators to ensure that our school-age employees see education and schoolwork as their top priorities. McDonald's Corporation and McDonala's Owner/Operators are similarly committed to ensuring that the McDonald's job experience complements and supports employees' educational goals. Our efforts are defined by the following principles: education always comes first, employment supports education, schoolwork balance and opportunity/careers at McDonald's.

Benefits

Competitive Wages MAC Card Haircut Discounts Wages increases McDonald's Training Programs Life insurance Education Support McDiect Shares Uniforms Flexible Hours

 Paid Vacation Bonus Scheme Stock Purchase Plan

Comparison between US McDonald's and China McDonald's

Everyone has to eat to live. However, more and more eating fast has become a away of life. People in the United States have eaten fast food for many years. This habit is moving to other countries as well, of course, including China . When McDonald's enter China market, for the fear of lagging behind and to satisfy with the curiosity, everyone goes to have a try what the taste of Big Mao is. After tasting it, you will know why it is so popular. Because they have critical quality control inspection, guaranteeing sanitation and quality. And also their success mainly depends on their advanced management not the food itself. Most people are satisfied with the quality of the food Which McDonald's Produces. However, the management of China McDonald's is slightly inferior by comparison. The McDonald's management in China is quite so young-just few years. Take training for example, entry-level workers are first taken through the basic Crew Training System. Each stage of advancement beyond the crew level then entails a new training program, with the skills becoming more complex and generalized. Each restaurant has its own video player and training room. Step-by-step manuals and video tapes cover every detail of the operation, everything from how to make a Big Mao to a shake. Trainers use a series of checklists as new crewmembers move through the restaurant. A level of competency is demonstrated and the activity is checked off on the SOC. Furthermore, if you are promoted to be a manager, you have chance to go to hamburger University . However, in China , there is not any Hamburger University for crewmembers or managers to enter. Here the crewmembers just taught easily on how to do the procedure, not a complete training program. That means it is not a professional program. China McDonald's are just aware of the quantity not the quality. Another concern is that at China McDonald's, a job is just a job, perhaps half of them think that working in McDonald's just for the money, just few of them think that working at McDonald's restaurant provided them with a wealth of experience and skills. But I think that the benefit is important as same as training. Because good benefits can keep the employee working for McDonald's and making progress. There are some benefits the china McDonald's employees don't have, such as educational assistance. China McDonald's don't Provide any program or scholarship for employee; profit sharing is strange for

China McDonald's employees, I think the Chinese employees just only have their own initial salad and life insurance and perhaps paid vacation; perhaps employees don't know much about the stock options for eligible employees and stock purchase plan.

Suggestions

That's the problem for China McDonald's. However, these big differences owing to our different cultures, customs and complicated background. The orient people have different thinking from the westerners. By saying that the emphasis I mean not the different thinking itself but their advanced management, for having probed the key to success, We could find Out that both soft and hard environment account for their achievement. And that deserves our pondering and reference in managing fast food market our own. And how we improve this incomplete system. For the aspect of training, we can introduce some video tapes and programs, learn from the Unit6d States McDonald's how they train employees, how they educate their employees. Mealtime china McDonald's should encourage employees receive more courses which are suitable for them to study. As the benefits, McDonald's should increase the employees' wages and let the employees enjoy more wealth of benefits, including bonus, education supports, profit sharing, stock purchasing and so on. These actions will encourage the motivation from employees and increase the efficiency of completely utilizing the human resource so that improve the outstanding achievement.