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McDonalds

TABLE OF CONTENTS
INTRODUCTION
01
HUMAN RESOURCE ANALYSIS
09
JOB ANALYSIS
10
PLANNING AND FORECASTING
18
RECRUITMENT
20
SELECTION
22
TRAINING
29
DEVELOPMENT
34
PERFORMANCE APPRAISAL
36
COMPENSATION
38
INCENTIVES
42
BENEFITS
44
EMPLOYEE RELATIONS
45
CONCLUSION AND RECOMMENDATIONS
50

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UNIVERSITY OF CENTRAL
PUNJAB

KUBRA ASLAM
L1S08BBAM2020
MARYM ATIQ
L1S08BBAM2032
KHADIJA BUTT
L1S08BBAM2024
PROJECT
MCDONALDS
SUBMITTED TO
PROF. R. SHAKOOR
20th June 2009

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A CKNOWLEGMENT

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First of all we are thankful to ALMIGHTY ALLAH who gave us the strength
and determination to carry out his project successfully.
We would also like to express our sincere gratitude to PROF.R.SHAKOOR
for his guidance, encouragement and continuance aid through the project.

Last but most important we are grateful to the HR manager of McDonald who
provide us with the opportunity to know about the HR management of
McDonald and cooperated with us throughout the project. She gave us a lot of
information which helped us a lot in the project.

INTRODUCTION
McDonald’s 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:
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, service,
cleanliness and value every time. The business was started in 1940 by two brothers DICK and MAC
MCDONALD in San Bernardino.

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HISTORY:
The corporation started out as a small drive-through in 1948 by two brothers, Dick and Mac McDonald.
Raymond Albert Kroc, a salesman, saw a great opportunity in this market and advised Dick and Mac to
expand their operation and open new restaurants. In 1961 Kroc bought out the McDonald’s. By 1967
McDonalds expanded its operations to countries outside the U.S.A.
Kroc allows anyone to open a franchise, and takes 1.9 percent of each franchise are as profits. He pays
0.5 percent to the McDonald's brothers.
In 1961, Kroc purchased McDonald's from the brothers for the hefty sum of 2.7 million dollars. In 1968
the Ray Krock introduced a show to attract the children, named “BOZO The Clown”. 1990 was proving
to be the booming year for Macdonald’s. In this year Macdonald’s franchises expanded world wide.

LANDMARKS
TRAVEL THROGH TIME WITH US !
➢ 1940: In 1940 Dick and Mac Mcdonald opened Bar- B-Que resturant
➢ 1948: In 1948 they made it a self-service drive in restaurant and added 9 more
items.
➢ 1949: In 1949 mcdonalds introduced world famous french fries and Triple Thick
Milkshakes.
➢ 1955: On 15th April Kroc opened the first franchise of Mcdonalds
➢ 1953: Golden Arches were designed by architect Stanely Meston in 1953
➢ 1958: In 1956 mcdonalds sold 100 million Hamburgers.
➢ 1959: Whereas in Fon Du Lac the 100th restaurant of mcdonalds was opened.
➢ 1961: In 1961 mcdonalds opened its Hamburger University.
➢ 1963: Mcdonald opened its 500th restaurant inToledoanf filet-o-fish was
introduced.
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➢ 1966: First television commercial was launched.


➢ 1967: Mcdonalds was introduced internationally in 1967. Today mcdonald
restaurants are in about 118 countries.
➢ 1968: Big mac and hot apple pie was introduced in 1968.
➢ 1969: Golden arches were updated
➢ 1975: Break-fast and first drive through was introduced.
➢ 1979 : Happy meal for kids was introduced
➢ 1980: Mcdonald celebrated its 25th anniversary
➢ 1983: Chicken mcnuggets were added
➢ 1985: DES PLAINES store meuseum was opened
➢ 1987: Fresh salads were added in the mcdonalds menu

➢ 1995: the new advertising theme “Have you had your break today” debuted.
➢ 1996: mandonalds launched its official site Mcdonalds.com
➢ 1997: chicken sandwiches were added
➢ 2001: new burger Big ‘N tasty was introduced
➢ 2003:Mcgrilled burger was introduced, premium salads were added and the First
global add campaign “ I’m Lovin it” was launched.
➢ 2005: Mcdonalds clebrated its 50th anniversary
➢ 2006: Snack-wrap was introduced.
➢ 2007: Packaging of mcdonalds was updated.
➢ 2008: Global packaging was changed and mcdonlads labled that all its food stuff
contain 0 grams trans fat.

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MACDONALD`S IN PAKISTAN
McDonald's started its operations in Pakistan in 1998 and is a leading fast food service retailer for its
valued customers. Currently McDonald's Pakistan is operating in various cities of Pakistan like Lahore,
Faisalabad, Karachi, Hyderabad, and Islamabad & Rawalpindi with plans to cover the customer base in
various other cities of the country.
McDonald's Pakistan is a part of the Lakson Group of Companies, with a regional office in Lahore and
the main Head Office in Karachi. Lakson Group also owns Lakson Tobacco Co., Century Insurance Ltd.,
and Cyber Net etc.

VISION
STATEMENT
The McDonald’s System
leverages the unique
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talents, strengths and


assets of diversity around
the globe in order to be our
customers’ favorite place
and way to eat.

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MISSION 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.

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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

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AIMS & OBJECTIVES OF MCDONALD’S’


“It’s what I eat and what I do…I’m lovin’ it”

McDonalds wants to deepen their connection with the customer by providing great service and
experience “in every restaurant, every time.” The usage of different activities allows McDonald’s and
the Customers to have a relation between them.

McDonald’s objectives are given as follows:


 To serve good food in a friendly and fun
environment.
 To be a socially responsible company.
 To provide good returns to its shareholders.
 To provide its customers with food of a high
standard, quick service and value for money.

COMPETITORS & PERFORMANCE


The five major fast food chains today competing in the market are:

 MCDONALD’S
 KFC
 SUBWAY
 BURGER KING
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 TACO BELL

This is a performance according to a survey done from 2004 to 2008, its results showed that McDonald's
dominated, followed by the intertwined duo of Kentucky Fried Chicken and Subway that were switching
position frequently. Next are Burger King and finally Taco Bell. Interestingly, the growth rate in Google-
popularity seemed to decrease more and more from no. 1 to the last one: the field was more separated in
the end than in the beginning
As you can see from the graph above that McDonalds is ranked as the most dominant of all its
competitors. The blue color represents the performance of McDonalds as compared to all of its

competitors shows that from 2004 to 2008 McDonalds captured highest of the market share of 75%
being at the top.

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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, motivating, developing and evaluating employees so that they
can have a share in the organization’s affairs.
All managers therefore take on human resource responsibilities. Employees are the most important
resources in McDonald's, particularly in creating a competitive edge.

FUNCTIONS OF HR IN MCDONALDS
The functions of HRM in McDonald’s 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.

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JOB ANALYSIS

MCDONALDS 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.

JOB ANALYSIS METHOD IN MCDONALDS


In job analysis McDonalds focuses on Work Activities and
Human Behaviors of an employee for a job.

JOBS IN MCDONALDS
McDonalds Pakistan has two types of job openings with
their sub openings as listed under

 Restaurant Jobs
 Office Jobs

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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:

 Customer service
 Food preparation
 Cleanliness and hygiene

OFFICE JOBS
Managerial jobs are categorized as Office Jobs in McDonalds. At McDonald’s office jobs are an
excellent match, provided an employee can exhibit the right skill set up to excel in the areas of his/her
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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 ANALYSIS METHOD IN MCDONALDS

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MCDONALDS applies the basic methods of Job analysis by which HRM can determine job elements
and the essential knowledge, skills and abilities for successful performance methods.
MCDONALDS uses the following job analysis methods according to their jobs:

 Observation Method
 Interview Method.
 Questionnaire Method.

The CREW MEMBERS are like main workers of the McDonalds because they are the one who handle
the stage work. McDonalds use direct Observation and Interviewing together Firstly, 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.

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, how they
manage all the work and satisfy the kids and their parents.

For the MANAGERIAL JOBS McDonalds use the Questionnaire and Interview Method. They
prepare a structured Questionnaire in which they ask employees about their jobs, purpose, education
required for the job, experience or other key factors. Whereas, in Interviewing they further collect the
information related to job directly from employees.

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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.

JOB DESCRIPTION AS PER JOBS


McDonalds represent its Job Description as
“Category Profile” and “Individual Competencies”

OFFICE JOBS
For office jobs Job Description is named as “Category Profile”
I. 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. MIDDEL ENTRY LEVEL:


 Strong interpersonal and leadership skills.
 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. 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
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 Customer orientation with a positive attitude towards provision of quality services

2. CUSTOMER CARE REPRESENTITIVES:


 To maintain work standards of Customer care, customer relationship
 To strengthen marketing at local store level.
 Perform with a strong focus toward customer orientation.
 To independently organize and execute various events at store level.
 To achieve agreed targets for enhancing Local Store Marketing.

3. CREW MEMEBERS :

 Good communication skills.


 Have ability to work at all levels required for crew members
 Work efficiently and in organized way.

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.

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
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Age: 22 - 28 years maximum


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 - 32 years maximum
Gender: Male or Female

HIGHER ENTRY LEVEL


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

CUSTOMER CARE REPERSENTATIVE


Qualification: Graduate Degree in any discipline
Experience: Fresh candidates with no prior experience
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Age: 24 years maximum


Gender: Females only

CREW M EMBER
Qualification: Intermediate
Experience: Fresh candidates
Age: 18-25 years
Gender: Male or Female

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PLANNING AND FORECASTING


PERSONNEL NEEDS
McDonalds uses the method of “TREND ANALYSIS” for forecasting its personnel needs. This is a
method in which the firm studies its past employment needs over a period of years to predict future
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. No doubt McDonalds has raised its value above mark. McDonalds
forecasts its personnel needs according to what has been the trend of its sales, revenue and labor needs
in the past. For this they use two ways

MANAGEMENT ESTIMATES
Managers are asked to forecast their staff requirements. They will do this on the basis of past, present
and likely future requirements.

WORK STUDY TECHNIQUES


Work-study specialist’s works out how long various jobs take, using available machinery and equipment.
Provided they know what sales are likely to be, they calculate the numbers of employees required and
the hours they will need to work. McDonalds forecasts the need of staffing employees by inside and
outside supply of candidates.

INSIDE SUPPLY OF CANDIDATES


In this forecasting method Information is collected on employees already working within McDonald’s.
For this purpose McDonalds uses Qualification Inventory 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

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OUTSIDE SUPPLY OF CANDIDATES


After determining the number of employees that can be obtained internally McDonalds searches for the
rest from the outside. For this McDonalds information system plays a vital role. It keeps track of the
economic conditions and employment rate and after that forecasts its external needs accordingly.
In this way McDonalds develops a pool of talent as much as possible so that it can choose best out of it.

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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 is decentralized. 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
McDonald’s restaurant can employ about 60 people who include the both managerial and floor- based
staff.

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.
MCDONALDS publicize their open jobs on their site www.mcdonalds2.rozee.pk 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.

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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.
External recruitment of McDonalds involves:

 Recruiting via internet


 Advertising
 College Recruiting
RECRUITING VIA INTERNET
Now a Days Recruiting via Internet is becoming very
common. 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.

ADVERTISING
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 as Internships because many
floor base employees usually join McDonalds for internship. Here they have one advantage that they
don’t have to pay them much and their workforce need is also fulfilled for a temporary period of time.

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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.

TESTING
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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:

 Motor& physical skills


 Personality( attitude test)
 Cognitive abilities (Aptitude and Intelligence test)

MOTOR AND PHYSICAL McDonald’s measures the motor means motion or movement skills of
its Crew Member to know about their physical abilities.

PERSONALITY In Personality tests conducted in McDonalds are taken both from Managers and
Crew Employees to know their temperament stability in work, attitude or their interests.

COGNITIVE ABILITIES McDonalds take Intelligence tests from employees who come for
Managerial Jobs these tests help them to evaluate the mental skills, intelligence , problem solving and
for other intellectual abilities.

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

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to perform a PRACTICAL WORK, where the McDonalds managers could evaluate them more
accurately.

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

PHYSICAL FITNESS TEST


In motor and physical abilities McDonalds took a Physical Fitness Test for their crew members
specially to know that they are physically fit, and could work fast in the hour of rush and as well they
don’t have any sort of viral or infectious diseases like for the crew members who work in production
lobby (food preparation area) and also to know their stress level that if there are large number of
customers standing for order so in that case how could they handle the situation mentally.

ATTITUDE TEST
In personality test that McDonalds take is related to Attitude of employees; in this test they measure the
behavior, stress level and temperament of employees. In this test behavioral questions are given to them
like, if you have a situation to deal with a customer who’s angry with you because of your
irresponsibility that you have given him a burger with no cheese than What would you do in that
situation? How would you behave with him? And try to cool-down him?

Through this sort of question McDonalds measures the temperament and attitude of employee.

APTITUDE TEST
For measuring cognitive abilities McDonald’s took a Psychometric Evaluation (a written aptitude test)
also called Aptitude Test. The test gives insights into the applicants' verbal and critical reasoning
amongst other important measures.

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CASE STUDY
In cognitive abilities the Intelligence test is most often taken from employees at managerial level. In
McDonalds this test is conducted through Case Study. A problem is given to employees in a form of
case study for which they have to find solution. A business or job related situations or problems are
given to employees
Through this testing McDonald could know about the problem solving skills of employees and predict
their practical performance as well.

ON-THE-JOB EVALUATION TEST


After the written tests in McDonalds employees undergo a two-day on-the-job evaluation at any of their
restaurant, which provides the employee with an opportunity to work practically on the floor and show
his/her skills. It also gives a chance to McDonald’s managers to observe and assess the employee’s
performance.

RELIABILTY
Reliability refers that if a same test is taken from employee twice or more times and if the result of test
achieved is same than it means that the test that you conducted is reliable.

RELIABILITY IN MCDONALDS TEST


Now McDonalds also checks the reliability of its tests by using the Retest Technique. In this method if
McDonalds managers took an aptitude test and what ever the scores of test come, they take that same
test from the employees again to judge the reliability, so if the result of both test match accurately or
with a little bit of difference than it means that the test is reliable. Thus this is most easy and appropriate
method to determine the reliability of test and McDonalds follows this technique.

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VALIDITY
McDonalds testing system is valid because their testing methods reflect to Content Validity. In content
validity job related tasks and skills are tested and if McDonald uses the on-the-job testing.

VALIDATION THROUGH AN EXAMPLE


McDonalds uses Case Study test for the managerial level of employees, now if a candidate applies for
the Executive Manager post and in case study test he is given with the case that if in McDonalds an
employee is working in marketing department and performing well, and K.F.C the competitor of
McDonalds want to hire that employee and offer him more pay and allowances than McDonalds. So
what steps should the candidate would take if as an executive manager to solve this problem because the
employee is good and they don’t want to lose him. Now the candidate has to give solution with logic,
here the test is being valid if the candidate answer well than it means he/she is best for this job and the
test is also being valid because it is measuring the same thing (here intellectual ability and problem
solving) for what it was made to measure.
Well here if a candidate answers that first he will increase the pay of the employee and give more
benefits to him by keeping in view his performance and secondly make a specific contract with him and
bound him with the organization on the decided pay and incentives, mentioned in the contract. Because
if he gives him such pay and incentive benefit he would definitely demand for more every time so by
signing a contract he will be bounded for a specific period of time.

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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:
 Interview format
 Interview content
 Interview administration

INTERVIEW FORMAT:
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.
PANEL 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
skills, knowledge or abilities.

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 After that they create situational (job-related) questions for the candidate to know their
capabilities.
 Finally, they appoint the interviewers to conduct and evaluate the interview

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BACKGROUND INVESTIGATION
In McDonald’s, reference checking is referred to as revising the ‘Job History’ which contains:
 Obtaining information from previous supervisors or peers on phone about the candidate’s
behavior, repute, skills, working method or other abilities.
 Checking any criminal record by investigating from police, neighborhood or others.
 Knowing the Previous Salary of the candidate from the former employer by formally going to
him or on phone.

TRAINING AND
DEVELOPMENT
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:

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 Quality
 Service
 Cleanliness
 Value
Abbreviated as (Q, S, C & V)

ORIENTATION
As like other organization McDonalds training and development program starts from orientation.
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, cultural values, present conditions, future goals
and objectives or plans of the company. They also watch videos related to company’s
information and handouts are also given to them.
 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.
 The head of the department decides that what objectives a new incoming employee should
carry out.

 In McDonald each employee works with or under a “Training Buddy” (supervisor).


 Employees get at least 6 months of time to show their skills and knowledge.
 After these 5 to 6 months orientation employees get their appointment letters as a permanent
employee of McDonalds.

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

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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 classroom-based 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.
AUDIO-VISUAL BASED TRAINING
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?

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HAMBURGER UNIVERSITY
“McDonald’s Center of Training
Excellence”
Since its inception, training at Hamburger
University has emphasized consistent restaurant
operations procedures, service, quality and
cleanliness. It has become the global center of
excellence for McDonald’s operations, training and
leadership development.

COLLEGE DEGREE
 The American Council on Education
(ACE) is the nation's unifying body for
higher education. They have recognized the
investment McDonald’s has made in people
and the company’s high-caliber training
curriculum.
 Hamburger University students can earn
credit toward a college degree through their course work. The American Council on Education
has recommended 100 percent of the restaurant manager and mid-management curriculum for
college credit – a total of 46 credits.
 This means that McDonald's training for Managers is now recognized as college-level course
work, eligible for credits that can be transferred to colleges and universities (both private and
public) and applied toward a 2 or 4-year degree.
 The average restaurant manager has completed the equivalent of approximately 21 credit hours
of college-level work through their McDonald’s training, which is equal to about one semester of
college.
CURICULAM
 At Hamburger University, 19 full-time professors with restaurant operations expertise - from
around the world - deliver the McDonald’s training curriculum.
 Our curriculum is delivered using a combination of classroom instruction, hands-on lab
activities, goal-based scenarios and computer e-learning modules.
 Like the UN, we have interpreters working with us, and we have the ability to teach in 28
languages including Spanish, German, French, Japanese and Mandarin Chinese.

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STUDENTS
 Since 1961, class attendance has grown from an average of 10 students to more than 200
students each week, and more than 5,000 students a year participate in Hamburger University
courses and learning activities.

 Hamburger University’s professional training and operation staff design deliver and implement
the core curriculum throughout the system using a variety of learning techniques, including
elements of self-study, e-learning and classroom training.

 Students are trained from the time they step into the restaurant…preparing themselves for
continues learning at our Regional Training Centers and Hamburger Universit

DEVELOPMENT

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CAREER MANAGEMNT
At McDonalds there are different management development plans. McDonalds has established a
development program for managers, employees and also for the workers at lower level. It includes:
 Management development plan for employees at all levels.
 McDonalds provide facilities to employees in their career planning.
 Transformation of employees is also carried out within the branch or in other branches.
 Different training courses are also arranged for the employee’s i.e. McDonald arranges a
Summer Crash Course for their employees.
McDonalds arrange following methods for specifically managers and employees development:
 Job rotation
 Case study
 University related programs
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.
CASE STUDY
In case study method McDonald give their employees an organization related problem and then the
managers give complete written description about the solution of problem given to them. It is most
situational and effective learning method.
UNIVERSITY RELATED PROGRAM
McDonald’s has developed a complete career management program for employees in their university
with their specific career paths that includes development paths for crew, restaurant managers, mid-
managers and Executives.

 The Crew Development Curriculum is developed and supported by the professionals at


Hamburger University and facilitated in the restaurant. For crew, this serves as a foundation for
management and support-staff career paths.

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 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.

 The Mid-Management learning path at Hamburger University is for business consultants and
department 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.

 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.

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PERFORMANCE APPRAISEL
Performance appraisal compares each employee’s 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 employee’s 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:

 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,
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.

PERFORMANCE APPRAISEL METHODIN MCDONALDS

McDonalds uses the Graphic Rating Scale Method for evaluating the performance appraisal of
employees.

GRAPHIC RATING SCALE METHOD


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Through the Graphic Rating Scale the head of the department rate the person according to the
performance of its work, skill, knowledge, experience and after the assessment according to the rating
scale, rate the employee as appraised.
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. 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 them
because 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.

COMPENSATION AND BENEFITS


COMPENSATION PROGRAMS

COMPENSATION METHOD
McDonald uses Broad banding trend of compensation, in this trend wide range of jobs and salary levels
are represented by Bands. So the employee, whose job falls on one of these grades, gives the pay range
listed on that grade and determines his or her salary. McDonalds has this system of compensation
because, broad banding allows for flexibility in terms of pay, growth and movement.

WHY THEY USING BROADBANDING METHOD


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McDonalds is using broad banding method for compensation because it is the most used method by
companies and it is relatively easy to handle. 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.

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.
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


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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.

LOWER LEVEL JOBS: For the lower level jobs like Crew Members or clerical workers McDonalds
conduct a salary survey through Telephone or Internet.

HIGHER LEVEL JOBS: Whereas, for the higher level jobs such as at managerial level a formal survey
is conducted by McDonalds. In McDonalds the employer collects the information from other employers
in a form of questioners, in which he asks about the overtime policies or bonuses, the starting salaries or
other increments.

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B.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, skills,
responsibilities and working conditions.
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.
FULL TIME EMPLOYEES:
The Full Time Working Employees are given salary on monthly basis they are known as permanent
employees.

C.GROUP SIMILAR JOBS INTO PAY GRADES


After job evaluation, McDonalds grouped similar nature of jobs into pay grades for establishing pay
rates. 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.

D.PRICING OF PAY GRADES


This step assigns pay rates to pay grades. For assigning pay rates to any level of job, McDonalds uses
Wage Curve which shows the relationship between value of the job and wage price for the job.
McDonalds through wage curve assign pay rates to part time and full time jobs according to the
requirement of job. 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.

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MCDONALDS MANAGERIAL JOBS


McDonalds price their managerial jobs on the basis of their performance of work, skill, knowledge and
experience. It is different for all level of managerial job.

McDonalds price its managerial jobs as:

 Base pay
 Incentive pay

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 a Bonus to top of employees in their base
salaries.

INCENTIVES PROGRAMS
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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. Managers and all employees of McDonalds treat with
respect to their seniors or subordinators and value them.
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. They communicate openly,
listening for understanding and valuing diverse opinions. They
accept personal accountability. They coach and learn.
COMPETITIVE PAY AND BENEFITS
Pay is the main factor of job, mostly pay is dependant on persons
skills, experience etc .In McDonalds Pay is at or above local
market rates and according to the vacancy offered by the organization.
LEARNING, DEVELOPMENT AND PERSONAL GROWTH:
Learning is the basic task of employee other than his pay, that what he or she learnt from his job, it’s
known as his or her experience. Employees receive work experience that teaches skills and values that
last a lifetime. Employees are provided the tools they need to develop personally and professionally.
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.
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:

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Long term incentives are granted to eligible employees to both reward and retain key employees who
have shown sustained performance and can impact long-term value creation at McDonald's
MEDICAL AND HOSPITAL FACILITIES:
It includes the some percent of compensation in the fee of hospital.

FREE FURNISHING ON HAVING NEW HOME (MANAGERIAL LEVEL): The employee’s at most
executive posts are given new and fully furnished home.

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.

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, 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).

BENEFIT PROGRAMS
HEALTH AND PROTECTION: Health and protection includes the following benefits:
 Medical Aid

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 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

EMPLOYEERELATIONS
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 employee’s union and the management negotiates with each
other and signs an agreement on the labor issues such as pays, benefits, working or other facilities.

COLLECTIVE BARGAINING IN MCDONALDS


UNION
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There is no such collective bargaining system is McDonalds because McDonalds don’t have a
predefined labor or crew unions. McDonald’s culture supports anti-union concept.
When a crew member or any lower level employee joins the McDonalds he/she have no basic
knowledge of Unions, but after working for a period of time, when they get familiar with the culture of
McDonalds they become more firm at anti-union concept.

The former CEO and Chairman of McDonalds Peter Ritchie says “Unions stifle
Creativity”; “there is no place for unions at McDonalds”; “ I have spent my entire life
opposing unions”; “I have had some horrible and stressful fights with union leaders,
it’s often very difficult keeping them out”

McDonalds has a well systematic pay rates, benefits and employee 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
procedure of employee 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.

PAY- RELATED BARAGAINING IN MCDONALDS


Unions play an important role in pay-related issues. Most of the time employees are not satisfied with
their pays. So they create problems, although many different agreements are signed between employees
and management. 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:

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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 EMPLOYEE RELATIONS


McDonalds has a comprehensible strategy of occupational health, safety and security of employees.

HEALTH SAFETY IN MCDONALDS


McDonalds has a safe environment regarding to health, 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.
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 (cooking
area).
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INSPECTION: For the hygiene of office and cooking place per month a inspector from food department
visits to observe the cleanliness system, this is better for employees themselves and the customers as
well.
NO SMOKING RULE: In the office a smoking rule is obeyed for the health protection of employees
and restaurant environment.
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.When employees are hired in theitraining session
they are informed with a complete description and safety measures related to their health.

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SAFETY AND SECURITY IN MCDONALDS


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 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. Also any sort
of Criminal Act from employees.
 Outside area signifies that if in McDonalds any one enters and makes them HOSTAGE or
Commits Bomb Blast, is a sign of big threat to their employees and restaurant as well.

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. 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 the Entrance of parking lot.

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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 at Entrance 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 doesn’t take place.

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CONCLUSION AND RECOMMENDATIONS

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 McDonald’s fulfills all the requirements of these tasks or functions in a true sense
of the meaning.
McDonald’s 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 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.

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

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