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HRM 2
HRM 2
INTRODUCTION
McDonalds brand is the leading global foodservice retailer with more than 30,000 local restaurants serving almost 50 million people in 120 countries each day.
FOUNDERS:
Its 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, service, cleanliness and value every time. The business was started in1940 by two brothersD IC K and MAC MCDONALD in San Bernardino.
VISION STATEMENT
The McDonalds System leverages the unique talents, strengths and assets of diversity around the globe in order to be our customers favorite place and way to eat.
M ISSION STATEMENT
McDonald's mission is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile.
Desserts Salads Breakfast items Milkshakes Coffee SERVICES: McDonalds provides basic two services such as: Self-Service System Drive-In through Service
FUNCTIONS OF HR IN MCDONALDS
The functions of HRM in McDonalds are:
POLICY-MAKING Establishing major policies that cover the place and importance of people in McDonald's. WELFARE - Concerned with looking after people at McDonald's and their needs. SUPPORTIVE Co-operative and helping other managers in their work. BARGAINING AND NEGOTIATING - Acting as an intermediary between different groups and interests.
ADMINISTRATIVE Responsible for pay rate system and supervision implementation of health and safety laws, etc.
JOB ANALYSIS
McDonalds has many employees who are working on different posts and are working hard according to their own capacity. 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.
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, there is a clearly defined career path, from Crew Member to Crew Leader to Floor Manager to Assistant Manager to Restaurant Manager. And from there onwards the opportunities for growth and development are limitless Area Supervisors, Operations Consultant and beyond are just a few to mention from. TRAINEE MANAGER : This is an entry level managerial position at McDonald's restaurant, providing opportunity to start and excel the career with the core business functions. Trainee managers handle various areas of professional excellence where sales, people, product safety and security are the minimum areas to be mentioned. CUSTOMER CARE REPRESENTATIVE :
This is an exciting career opportunity for the females, 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. 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. This job is offered either as a Delivery Rider or a Crew Member. So the fun & enthusiasm prospect apart from extensive learning will make employees a key member of the team serving our customers. There are three main areas of responsibility of a crew member: y Customer service y Food preparation y Cleanliness and hygiene OFFICE JOBS : Managerial jobs are categorized as Office Jobs in McDonalds. At McDonalds office jobs are an excellent match, provided an employee can exhibit the right skill set up to excel in the areas of his/her expertise. Depending upon the knowledge, experience and right aptitude, there are 3 key entry points in the office jobs. INITIAL ENTRY LEVEL : This entry level is specifically for beginners to start the career in a professional work culture, these positions will provide the opportunity to develop the skills as a successful business entrepreneur. 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. HIGHER ENTRY LEVEL : The higher entry level job incumbents are accountable for the execution of assigned tactics and strategic plan. The provision of leadership approach to work will enhance their sense of ownership and part of the winning team member.
JOB DESCRIPITION
The job analysis is used to generate a job description, which defines the duties of each task, and other responsibilities of the position. The description covers the various task requirements, such as mental or physical activities; working conditions and job hazards.
RESTAURANT JOBS
For restaurant jobs the Job description is written as Individual Competencies
TRANIEE MANAGER:
y Effective communication skills able to work in a team environment
y Proactive to exhibit true managerial capability y Career oriented with focus on continuous learning y Flexibility to adapt to a diversified work culture y Customer orientation with a positive attitude towards provision of quality services
CREW MEMEBERS :
y Good communication skills. y Have ability to work at all levels required for crew members
JOB SPECIFICATION
The job specification describes the person expected to fill a job. It details the knowledge (both educational and experiential), qualities, skills and abilities needed to perform the job satisfactorily. The job specification provides a standard against what to measure; how well an applicant matches a job opening and it should be used as the basis for recruiting.
OFFICE JOBS:
In office jobs it is known as COMPENTANCY LEVEL
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 - 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 - 35 years maximum Gender: Male or Female
RESTURANT JOBS :
Job Specification is represented by Profile in McDonalds.
TRAINEE MANGER:
Qualification: Post Graduate Degree in any discipline Experience: Fresh candidates with no prior experience Age: 28 years maximum Gender: Male or Female
CREW MEMBER:
Qualification: Intermediate Experience: Fresh candidates Age: 18-25 years Gender: Male or Female
MANAGEMENT ESTIMATES :
Managers are asked to forecast their staff requirements. They will do this on the basis of past, present and likely future requirements.
system. A Qualifications Inventory of current employees gives the thorough information about current employees skills, education, career, performance and other interests. HR requirements of McDonald's may be met by training and developing current staff rather than recruiting externally.
RECRUITMENT
Recruitment is the first part of the process of filling a vacancy. It includes examination of the vacancy, the consideration of sources of suitable candidates, making contact with those candidates, attracting application from them, short listening, interviews and finally induction of the selected candidates within the budget of the department company. In McDonalds recruitment process isdecen tr aliz ed. Every branch of McDonalds is independent to hire the employees. Usually at McDonalds employees are hired in a form of badge. Also the transformations of employees within the franchises of McDonalds took place for recruiting the employees. A typical McDonalds restaurant can employ about 60 people who include the both managerial and floor- based staff.
INTERNAL RECRUITMENT:
McDonalds uses the following two basic methods for internal recruiting y Job Positioning y Succession Planning
JOB POSITIONING:
In Job positioning McDonalds select candidates from inside by considering their past performance. MCDONALDS publicize their open jobs on their site ,where their employees could apply for the job they also publicize it in their restaurants on Notice Boards. So that the working employees could be informed from the vacant position and apply.
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.
EXTERNAL RECRUITMENT:
McDonalds often goes for external recruitment though they mostly prefer internal recruitment or internal promotion of the employees to the higher posts. External recruitment of McDonalds involves: y Recruiting via internet y Advertising y College Recruiting
Advertising is the most used method for recruitment. McDonalds approaches the Newspaper or a magazine adds mostly to invite employees for jobs.
COLLEGE RECRUITING:
McDonalds follow the most common method of college recruiting known asInter ns hips because many floor base employees usually join McDonalds for internship. Here they have one advantage that theydont have to pay them much and their workforce need is also fulfilled for a temporary period of time.
SELECTION
The selection process of McDonalds involves the following factors: y Initial screening y Testing y Interviewing y Background investigation
INITIAL SCREENING:
In initial screening McDonalds collects the application forms of candidates from theirW ebs ite 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.
TESTING:
TESTING EMPLOYEES IN MCDONALDS: McDonalds take the following tests to check the abilities, knowledge and nature of work of employees. MCDONALDS TESTING FACTORS: McDonalds conduct tests to know the following factors: y Motor& physical skills y Personality( attitude test) y Cognitive abilities (Aptitude and Intelligence test) .TESTING PROCEDURE:
McDonalds always want a multi-skilled worker or employee who could work efficiently at any level. 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, where the McDonalds managers could evaluate them more accurately. MCDONALDS TESTING METHODS: McDonalds took following tests of employees: y Physical fitness test y Attitude test y Aptitude test y Case study test method y On-the-Job evaluation test
INTERVIEWNG:
All candidates after formal testing are called for the final interview. This is where the final and overall assessment of the candidate takes place and selection decisions are made. MCDONLADS INTERVIEW: The selection interview of McDonalds is classified it into as given classifications: y Interview format y Interview content y Interview administration INTERVIEW FORMA T : McDonalds employ Structured or Directive Interview content; 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. Here questionnaires are prepared according to the job requirements. INTERVIEW CONTENT: McDonalds has a set interview content known as Situational Interview, 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. ADMINISTERING INTERVIEW: For administering the test McDonalds conducts a most common used system Panel Interview.PA N EL INTERVIEW: McDonalds take panel interview. In this interview a panel or group of executives or senior employees usually HR manager and head of the particular department ask situational or other basic questions from the candidate. 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.
INTERVIEW PROCEDURE : In McDonalds interviewing system apply subsequent method: First they examine the job description, specification, duties, and requirements for a job such as : y skills, y knowledge or abilities. y After that they create situational (job-related) questions for the candidate to know their y capabilities. y Finally, they appoint the interviewers to conduct and evaluate the interview
At McDonalds, a job is never just a job; employees know that working at McDonalds provides them with a wealth of knowledge, experience, skills and above all a true fun work Environment. McDonalds follow a highly structured training process. Employees in McDonalds are trained at all levels. 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: y Quality y Service y Cleanliness y Value y Abbreviated as (Q, S, C & V)
ORIENTATION:
As like other organization McDonalds training and development program starts from orientation. In McDonalds employee orientation program range from 5 to 6 months and it includes such contents: y Welcome Orientation Day is arranged for the new employees where they got familiar with the history or background of the company, cultural values, present conditions, future goals and objectives or plans of the company. They also watch videos related to companys information and handouts are also given to them. y Employees are formally told about what to wear their dress code or uniform. y Then employees have to spend 15 to 25 days in different sub departments under one department. y The head of the department decides that what objectives a new incoming employee should carry out. y In McDonald each employee works with or under a Training Buddy (s u p er v is o r ) . y Employees get at least 6 months of time to show their skills and knowledge. y After these 5 to 6 months orientation employees get their appointment letters as a permanent employee of McDonalds.
LECTURES :
The first stage of training is at the Welcome Meetings. These are usually arranged in a Training Centre or Room. These lectures set out the company's standards and expectations for the new employees. Where, employees are introduced with a complete description about the job, and a guideline that how to work and what are the job requirements and procedures. A verbal outline is given to the employees.
ON-THE-JOB TRAINING:
The majority of training is floor based, 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. All new employees have an initial training period. 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. They will also attend classroombased training sessions where they will complete workbooks for quality, service and cleanliness.
JOB ROTATION:
McDonalds also uses the most known type of on the job training Job Rotation. It is done within the specific department so that the employee becomes familiar with all level of jobs.
For the new trainees McDonalds also provide them with DVDs, films, 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. They match up the performance behavior of employees before training and after training like, 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?
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. y Restaurant Managers progress their way through Shift Management and Systems Management courses while attending one of our 22 regional training centers. Once these courses have been completed, managers attend Hamburger University where they learn the additional knowledge and skills they need to run a multi- million dollar restaurant. y The Mid-Management learning path at Hamburger University is for business consultants anddepartment heads. It builds on their leadership and consulting skills, teaching individuals how to effectively operate a business and how to coach and consult with others to run great restaurants.
y The Executive Development learning path helps reinforce ongoing business and leadership skills for top management. The courses available at Hamburger University build upon the leadership competencies needed to support employees, Owner/operators and sales growth.
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. y Restaurant Managers progress their way through Shift Management and Systems Management courses while attending one of our 22 regional training centers. Once these courses have been completed, managers attend Hamburger University where they learn the additional knowledge and skills they need to run a multi- million dollar restaurant. y The Mid-Management learning path at Hamburger University is for business consultants anddepartment heads. It builds on their leadership and consulting skills, teaching individuals how to effectively operate a business and how to coach and consult with others to run great restaurants. y The Executive Development learning path helps reinforce ongoing business and leadership skills for top management. The courses available at Hamburger University build upon the leadership competencies needed to support employees, Owner/operators and sales growth.
PERFORMANCE APPRAISEL
Performance appraisal compares each employees actual performance with his or her performance standard. Managers use job analysis to determine the job specific activities and performance standards. Performance appraisal helps in estimating employees current performance, setting work standards and then providing feedback to employees with the aim of eliminating performance deficiencies. PARAMETERS OF PERFORMANCE APPRAISAL: The performance appraisal is based on the following some of the parameters: y Ethics y General Knowledge/ IQ, y Confidence y Motivation y Team Work y Communication Skill At McDonalds every employee is on a race to give the best performance through their knowledge, abilities and skills. An appraisal session is also arranged for the employees. 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. In McDonalds the yearly appraisals of employees are done in June to July.
y Personal effectiveness/efficiency y Teamwork y Productivity y Quality of work y Reliability In McDonalds employees are rated according to these or more traits. Rated on his/her performance that the employee is good in communication skills or not, the employee could work independently on its own. The employee is cooperative with other his/her co-workers. 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. 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. 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.
pay their employees according to the job or level. Mangers own different higher pays as compared to worker or Crew members.
ESTABLISHMENT OF PAY RATES : Why pay rates are established???? It is very difficult to set pay for any organization without conducting pay rates. Pay rates are necessary to define because it is better for both employer and employee. FOR EMPLOYER: He sets salaries according to the market or could be more from market and employer get knowledge about market. 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. PAY RATES IN MCDONALDS : McDonalds follow following steps in establishing of pay rates A.MCDONALDS SALARY SURVEY McDonalds conduct salary survey, that what other employers are paying for the same nature of job to there employees. McDonalds pays more to their employees as compare to market. So, the salary survey is necessary for establishing pay rates. McDonalds has also given its salary ranges on different jobs in their site. COMPETENCY-BASED PAY : McDonalds dont 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. But McDonalds pay their employees according to the job or level. Mangers own different higher pays as compared to worker or Crew members. ESTABLISHMENT OF PAY RATES : Why pay rates are established???? It is very difficult to set pay for any organization without conducting pay rates. Pay rates are necessary to define because it is better for both employer and employee. FOR EMPLOYER: He sets salaries according to the market or could be more from market and employer get knowledge about market. 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.
PAY RATES IN MCDONALDS McDonalds follow following steps in establishing of pay rates A.MCDONALDS SALARY SURVEY McDonalds conduct salary survey, that what other employers are paying for the same nature of job to there employees. McDonalds pays more to their employees as compare to market. So, the salary survey is necessary for establishing pay rates. McDonalds has also given its salary ranges on different jobs in their site.
BASE PAY:
Employees' base pay is the most significant portion of their compensation, McDonald's maintains the competitiveness of base pay through an annual review of both external market data and internal peer data.
INCENTIVE PAY:
Incentive pay provides their employees with the opportunity to earn competitive total compensation when performance meets and exceeds goals. The Target
Incentive Plan links employee performance with the performance of the business they support. TIP pays aBonu s to top of employees in their base salaries.
INCENTIVES PROGRAMS
ORGANIZATION WIDE:
McDonalds has developed under given People Philosophy for compensating and motivating their employees.
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, these include: y Presidents' Award (given to the top 1% of individual performers worldwide) y Circle of Excellence Award (given to top teams worldwide to recognize their contributions for advancing our vision).
BENEFIT PROGRAMS
HEALTH AND PROTECTION:
Health and protection includes the following benefits: y Medical Aid y Pension or Provident Fund y Disability Cover y Funeral Cover y Accidental death & dismemberment (AD&D)
y Employee of the Month program y Annual employee recognition awards y Opportunity for local and/or international training at all levels
EMPLOYEE RELATIONS
In any organization employee relation plays a key role. 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.
COLLECTIVE BARGAININIG:
Collective bargaining is a process in which employees union and the management negotiates with eachother and signs an agreement on the labor issues such as pays, benefits, working or other facilities.
needs program so when a new employee comes to join McDonalds they define every single policy, values, culture and employee benefits or compensation programs. So he employee working in McDonalds is well-aware of their relations. More precisely, 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.
Although on other hand some employees believe that it should be done on the basis of On-the-job performance or workplace effort. Like if an employee performs well his/her pay should be increased through individual bargaining, that the employee himself should demand for more pay. But the management or managers of McDonalds believe that pay is not a subject on which employees negotiate individually, 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. In McDonalds when employee is recruited they specially discuss the terms and conditions about the pays and negotiation issues on pays.
McDonalds has a comprehensible strategy of occupational health, safety and security of employees.
For safety and security of employees two areas are considered such as, Inner area of the office and outside threats. Inside office means that the safety and security of office, like M cDonalds has a production lobby inside theirrestaurant 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. Also any sort of Criminal Act from employees. Outside area signifies that if in McDonalds any one enters and makes them HOSTAGEor Commits Bomb Blast, is a sign of big threat to their employees and restaurant as well.
NATURAL SECURITY:
Natural security means securing your office architectural area. McDonalds has Security Guards and Check Post in parking lot.
SECURITY GUARDS:
They have security guards in their Parking Area and at the Entrance Door as well.
CHECK POST:
Also a check post is placed at theEntr ance of parking lot.
MECHANICAL SECURITY :
In mechanical security system technological systems or machines are used to enhance the security system. McDonalds has placed a scanner at their entrance door, CCTV cameras are also fixed in and outer area of the restaurant, fire extinguishers and stabilizers for short circuit. SCANNER: Scanners are placed
atEntr ance door for every customer or person to detect any metallic thing like weapons etc. CCTV CAMERAS: CCTV cameras help McDonalds to monitor every movement of customers or any person who is in the restaurant. 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. Fire alarms are also placed. STABILIZERS: In the case of electric short-circuit are used to retain the voltage of electricity and any mishap doesnt take place.
CONCLUSION
HR POLICIES AND PRACTICES OF MCDONLADS
The HR polices and practices involve certain core tasks to fill such as: Recruitment, Selection, Evaluation, Performance, Compensation and certain
other factors. The HR department of McDonalds fulfills all the requirements of these tasks or functions in a true sense of the meaning. McDonalds strongly believes in the 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. 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.
SUGGESTIONS
After critically evaluating the HR Functions of McDonalds we recommend the following suggestions according to the each section of HR: JOB ANALYSIS: For job analysis we recommend that McDonalds should also includePer for mance Standardsand Human Requirements which would help them more in making job description and specification. JOB DESCRIPTION AND SPECIFICATION: Well their job description and specification is not clear they have intermingled it. In Job Description they have written about the skills required in an employee not about the duties he/she would have to perform. Similarly in Job Specification they have just written general information not about the skills and personality traits. 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. 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, language, talking way and facial expression of employees. 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. COMPENSATION & BENEFITS: For the employees at lower level like crew members, a properM edical n Check-up after every month should be provided to them and theirpays should be increased comparing to the economic conditions of country. For higher level employees aLife- ins ur ancepolicy should be made.