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Human Resource Management in McDonalds Pakistan

Submitted to: Sir Ahsan


Aimen Fatima F-12-2042 MBA 2nd Lahore leads university

Table of contents
Introduction .1 McDonalds Pakistan ...1 Mission vision statement .2 HR management .3 Functions of HR ..3 Job analysis .3

Jobs in McDonalds ...5 Job analysis method .6 Job description .7 Job specification ...9 Planning & forecasting .9 Recruitment .10 Recruitment method .11 Selection 12 Interviewing ..13 Training & development ...14 Training methods ..14 Performance appraisal .15

Performance appraisal method .15 Compensating program 16

Introduction & History of MacDonald


McDonald's has come a long way since Ray Kroc laid down the foundation of the Company in 1954. Story goes that Ray Kroc mortgaged his home and invested his entire life savings to become the e x c l u s i v e d i s t r i b u t o r o f a f i v e s p i n d l e d m i l k s h a k e m a k e r c a l l e d t h e Multi mixer. Hearing about the McDonald's hamburger stand in California r u n n i n g e i g h t M u l t i m i x e r s a t a t i m e , h e p a c k e d u p h i s c a r a n d h e a d e d west. Ray Kroc pitched the idea of opening up several restaurants to the brothers Dick and Mac McDonald (hence the name), convinced that he could sell eight of his Multi mixers to each and every one. McDonald's today is one of the largest and the best known global foodservice retailer with more than 30,000 restaurants in 121 countries serving47 million customers each day. McDonalds serves less than one percent of the world s population. McDon alds outstanding brand recognition, e x p e r i e n c e d m a n a g e m e n t , h i g h q u a l i t y f o o d , a d v a n c e d o p e r a t i o n a l systems and unique global infrastructure ensure a position that enables them to capitalize on global opportunities.

MacDonalds Pakistan
McDonalds is part of the Lakson group of companies, a leading business in Pakistan. McDonalds first restaurant has opened its door to the people of Pakistan in September 1998 in Lahore. Karachi opened its first restaurant after one week. There are now 18 restaurants in four major cities of Pakistan: 7 in Karachi, I in Hyderabad, 9 in Lahore and1 in Faisalabad since the company first opened its doors to the people of Pakistan. This launch was met with unprecedented enthusiasm form the citizens of Lahore who are known for their liveliness, vigor and penchant for quality food. Today millions of Pakistanis place their trust in McDonalds to provide them best quality food, quick service and value for money. World famous French fries, Big Mac, Quarter Pounder, Chicken Mc Nuggets and egg Mc Muffin are not only kids' favorites but also lure in the customers of all ages. McDonalds is firmly committed to give back to the community where it operates. They are happy to become involved because they recognize those organizations have a role to play in helping communities to work successfully.

Worldwide strategies:
1. Be the best employer for the people in each community of the world. 2. Deliver optional excellence to customers in each restaurant. 3. Achieve enduring profitable growth by expanding the brand and leveraging the strengths of MacDonalds system through innovation and technology.

Mission Statement:
Dont worry about making money Love what you are doing and always put the customers first.And success will be yours!

Vision statement:
Being the best means providing outstanding quality service and cleanliness so that the company makes every customer in the restaurant happy.

Objectives:
To satisfy the internal customers because they are the window to the external customers

HR MANAGEMANT IN MCDONALD
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 organizations 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:
The functions of HR in McDonalds are

Policy Making: Establishing major policies that cover the place and importance of people in
McDonald.

Welfare: Concerned with looking after people in McDonald and their needs. Supportive: Corporative and helping with other managers in their work. Administrative: responsible for pay rate system and supervision 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 McDonald:
McDonalds Pakistan has two types of jobs with their sub openings as listed under Restaurant job Office job

Restaurant Job:
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. 1. 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.
2. 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.
3. Crew Members: 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 & hygienic

Office Job:
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. 1. 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.
2. 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.

3. 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


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

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 crew members about the detail of their work.

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.

Managerial Jobs: 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.

Job Description
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 hazard.

Job Description as per job:


McDonalds represent its job description as Category Profile and Individual Competence

Office Job: For office jobs Job Description is named as Category Profile
1. Initial 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 2. Middle entry level: Strong interpersonal and leadership skills. Effective negotiation & problem solving skills The ability to see the big picture while delivering organizational goals

Restaurant Job: Competencies

For restaurant jobs the Job description is written as Individual

1. Trainee manager: Effective communication skills able to work in a team environment Proactive to exhibit true managerial capability Career oriented with focus on continuous learning Flexibility to adapt to a diversified work culture Customer orientation with a positive attitude towards provision of quality services 2. Customer care representatives: 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 members: 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 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 Manager: Qualification: Post Graduate Degree in any discipline Experience: Fresh candidates with no prior experience Age: 28 years maximum Gender: Male or Female Customer care representative: Qualification: Graduate Degree in any discipline Experience: Fresh candidates with no prior experience McDonalds Age: 24 years maximum Gender: Females only Crew member: Qualification: Intermediate Experience: Fresh candidates Age: 18-25 years Gender: Male or Female

PLANNING AND FORECASTING PERSONNEL NEEDS


McDonalds uses the method of TREND ANALYSIS for forecasting its personnel needs. 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 1. Management Estimate: Managers are asked to forecast their staff requirements. They will do this on the basis of past, present and likely future requirements . 2. Work Study Techniques: Work-study specialists 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 McDonalds. 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.

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.

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. Atypical

McDonalds restaurant can employ about 60 people who include the both managerial and floorbased staff.

Recruitment methods in McDonalds


McDonalds basically follow two types of recruitment such as: 1. Internal recruitment 2. External recruitment

Internal recruitment:
McDonalds uses two methods for internal recruitment Job position 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: Recruiting via internet Advertising College recruiting

Recruitment 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 CVs through online process and often recruit employees from there.

Advertising: Advertising is the most used method for recruitment. McDonalds approaches the Newspaper or a magazine adds mostly to invite employees for jobs. College recruitment: McDonalds follow the most common method of college recruiting known as Inter ns hips because many floor base employees usually join McDonalds for internship. Here they have one advantage that they dont have to pay them much and their workforce need is also fulfilled for a temporary period of time.

Selection
The selection process of McDonalds involved following factors: Initial screening Testing Interviewing Background investigation

Initial Screening: In initial screening McDonalds collects the application forms of candidates from their Webs its online and also by Mail or Fax and then they choose those applications which are according to their job requirements and call those candidates for further process. Testing: McDonalds take test to check their knowledge, abilities and nature of work of employees. McDonald conduct test to know the following factors: Physical skills Personality ( attitude test) Cognitive abilities (aptitude & 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 belittle 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 PRACTICALWORK, where the McDonalds managers could evaluate them more accurately.

Testing Methods:

Physical fitness test Attitude test Aptitude test Case study test On-the-job evolution test

Interviewing
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. 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. Interview Administration: 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. 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.

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: Quality Service Cleanliness Value

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: 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 companys 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:
Following training methods are used in McDonalds: On-The-Job training Job rotation

Lectures Audio-visual training

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. 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. Audio-Visual 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.

Performance Appraisal
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: 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 Appraisal Method:


McDonalds uses graphing rating scale method for evaluating the performance appraisal of employees.

Graphing rating scale method:


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 Program

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

Conclusion:
The operative philosophy of the McDonald's system is based on the Quality, Service, Cleaning and Value for 44 years. The company offers a standard menu, although it develops in each culture special products that are adjusted to the pleasure of the community. McDonald's is successful because it has a system of corporate norms and individual opportunities, to all the Franchises they are integrated in the same philosophy of values and clear expectations. McDonald's guides all the actions according: to organizational values as working in team, to feel passion for the work always offering the best of themselves, to be committed with the partners and with the mission of the company, to be entire in each one of the actions, to be leaders,

Recommendation:
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 include Performance Standards and 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 interred mingled 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 Test should 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.