Professional Documents
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HR Practices MC Donalds
HR Practices MC Donalds
INTRODUCTION
HUMAN RESOURCE ANALYSIS
JOB ANALYSIS
PLANNING AND FORECASTING
RECRUITMENT
SELECTION
TRAINING
DEVELOPMENT
PERFORMANCE APPRAISAL
COMPENSATION
INCENTIVES
BENEFITS
EMPLOYEE RELATIONS
CONCLUSION AND SUGGESTIONS
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.
VISION STATEMENT
The McDonald’s System leverages the unique talents, strengths and assets of diversity around the globe in
order to be our customers’ favorite place and way to eat.
M ISSION STATEMENT
McDonald's mission is to be the world's best quick service restaurant experience. Being the best means
providing outstanding quality, service, cleanliness, and value, so that we make every customer in every
restaurant smile.
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.
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 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 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.
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.
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
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 theydon’t have to
pay them much and their workforce need is also fulfilled for a temporary period of time.
SELECTION
The selection process of McDonalds involves the following factors:
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
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)
.TESTING PROCEDURE
McDonalds always want a multi-skilled worker or employee who could work efficiently at any level. For that
when they hire employees they test according to their above mentioned criteria that the employee should be
little or more skilled to work in any area. In McDonalds employees are tested in two basic ways first through
some ORAL OR WRITTEN TESTS they are judged and then they are allowed to perform a PRACTICAL
WORK, where the McDonalds managers could evaluate them more accurately.
MCDONALDS TESTING METHODS
McDonalds took following tests of employees:
Physical fitness test
Attitude test
Aptitude test
Case study test method
On-the-Job evaluation test
INTERVIEWNG
All candidates after formal testing are called for the final interview. This is where the final and overall
assessment of the candidate takes place and selection decisions are made.
MCDONLADS INTERVIEW
The selection interview of McDonalds is classified it into as given classifications:
Interview format
Interview content
Interview administration
INTERVIEW FORMA T :
McDonalds employ Structured or Directive Interview content; the managers first make a set of proper
Questionnaires related to job and also predetermine their answers and ask those questions from applicants in a
structured order. Here questionnaires are prepared according to the job requirements.
INTERVIEW CONTENT:
McDonalds has a set interview content known as Situational Interview, they ask situational questions from
their employees like give them a situation and ask their opinion that what would they do in that situation but the
situations are job-related.
ADMINISTERING INTERVIEW:
For administering the test McDonalds conducts a most common used system Panel Interview. 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
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?
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”.
INCENTIVES PROGRAMS
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:
Long term incentives are granted to eligible employees to both reward and retain key employees whohave
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
mostexecutive 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
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
EMPLOYEE RELATIONS
In any organization employee relation plays a key role. If the employees of an organization are satisfied it
means that the organization could touch to the heights of success because a satisfied employee will work more
passionately.
COLLECTIVE BARGAININIG
Collective bargaining is a process in which employee’s union and the management negotiates with eachother
and signs an agreement on the labor issues such as pays, benefits, working or other facilities.
COLLECTIVE BARGAINING IN MCDONALDS UNION
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 stifleCreativity”; “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:
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 (cookingarea).
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.
CONCLUSION
HR POLICIES AND PRACTICES OF MCDONLADS
The HR polices and practices involve certain core tasks to fill such as: Recruitment, Selection, Evaluation,
Performance, Compensation and certain other factors. The HR department of 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.