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Human Resource Management in McDonald's

We select McDonald's to analyze its training, education and benefit through


overview its history and job structure Furthermore, we compare McDonald's in
US with McDonald's in China on those of standards mentioned above. Finally,
we give some constructive and rationalizative suggestions.

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

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

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

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

2. The Job structure

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

Training

Employee training at McDonald's is highly structured. Ends-level workers are
first taken through the basic Crew Training System. The program consists of
on-the job- training and is largely vocational. Each stage of advancement
beyond the crew level then entails a new training program, with the skills
becoming more complex and generalized.
Training begins immediately with a one-hour orientation on the company. Each
restaurant has its own video player and training room. Step--by --step manuals
and video tapes cover every detail of the operation, everything from how to
make a Big Mao to a shake. Each restaurant has 25 stations from the grill area
to the front counter; Trainers use a series of checklists as new crew members
move through the restaurant. A level of competency is demonstrated and the
activity is checked off on the SOC--Station Observation Checklist. There is a
follow-up SOC to get certified on the station.
One a crew trainer has been promoted to swing manager and performed
successfully, he or she is eligible for the Management Development Program. It
provides technical and functional management skills for employees at the swing
manager level and above. The first step is the Basic Operations Course, which
takes several months to complete. It is a course which covers fundamental
restaurant opinions. The nab in the sequence is the Basic Management Course,
Which teaches leaderships, time planning, and crew recognition. In the
intermediate Operations Course, students are trained on crew recruitment and
retention, store leadership and decision-making. The final course in this
sequence is the Regional Equipment Course.
Once a front-line crew member has progressed to the position of assistant
managed, he or she is eligible to attend Hamburger University, the Company's
world wide training centre for management personnel. Approximately 2,500
managers and potential franchisees take part in the Advanced Operations
Course, or AOC. The Management training curriculum at Hamburger
University has been altered in scope: almost 80% of the advanced operations
Course is now devoted to enhancing communication, interpersonal, and human
relations skills. Teaching methods have shifted from lecture format to include
role playing with video feedback and small group exercises. All managers are
required to receive training from hamburger University at least once every 5
years. New emphases include goal setting, diversity management, team
building, and employee development.
The company has plans for a certification program which will govern how
employees progress from the crew to the level of restaurant managers. Plans are
also in place for a Workplace Skills Certificate. It would be given to crew
members who have mastered a set of essential workplace skills, and thus
provide a "walk able credential" to enable them to move onto another position
within the consumer service industry. McDonald's is a quick service restaurant
business committed to 100% satisfaction. Macdonald's independent Franchisees
and Company-owned restaurants serve over 22 million customers every day
around the world. Each and every one of these customers deserved great
services from the moment they approach the counter or drive-thru window until
they leave the restaurants. We depend on the employees in the restaurant,
whether employed by an independent franchise or by McDonald's Corporation,
to provide a fast friendly and courteous experience to all guests so they will visit
us again and again. That's why McDonald's Independent Franchisees and
McDonald's Corporation look for
individuals who like to have fun While delivering fast accurate and friendly
service. If you are interested in becoming a part of a McDonald's Team, here are
some of the duties that could be required of you.
1. On Time, Neat and Clean: Our crewmembers are expected to report work on
time, neat and clean.
2. Wash Your Hands: the most important thing crewmembers so to help make
sure our customers receive safe food is to wash their hands often.
3. Skills and Training: Training will provide you with the skills you will need to
perform your job.
4. Standards: Crewmembers follow standard operational procedures so
customers always receive exceptional quality & service.
5. Teamwork: Our crewmembers rely on teamwork and high energy to get the
job done.
6. Clean' Spotless... Tidy... sparking. Our customers expect every McDonald's
will be clean.
7. Welcomed Guest: Our crewmembers make each customer feel like a
welcomed guest.
8. Service: We depend on our crewmembers to deliver fast, accurate and
friendly service with a smile.

Education

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

Benefits

Competitive Wages
MAC Card
Haircut Discounts
Wages increases
McDonalds Training Programs
Life insurance
Education Support
Muddiest Shares
Uniforms
Flexible Hours
Paid Vacation
Bonus Scheme
Stock Purchase Plan

Comparison between US McDonald's and China McDonald's

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

Suggestions

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