1.

Introduction

McDonald's is an American fast-food company, founded in 1940 as a restaurant operated

by Richard and Maurice McDonald, in San Bernardino, California, United States. In 1948,
they reorganized their business as a hamburger stand, using production line principles. In
1953, the first time a McDonald's franchise used the Golden Arches logo was at a location
in Phoenix, Arizona, USA. In 1955, Ray Kroc, a businessman, joined the company as a
franchise agent and proceeded to purchase the chain from the McDonald brothers.
McDonald's had its original headquarters in Oak Brook, Illinois, but has approved plans
to move its global headquarters to Chicago by 2018.

Today, McDonald's is one of the world's largest restaurant chains, serving approximately
69 million customers daily in over 100 countries across approximately 36,900 outlets as
of 2016. McDonald's primarily sells hamburgers, cheeseburgers, chicken products, French
fries, breakfast items, soft drinks, milkshakes, wraps, and desserts. In response to changing
consumer tastes and after facing criticism for the unhealthy nature of their food, the
company has expanded its menu to include salads, fish, smoothies, and fruit. A
McDonald's restaurant is operated by a franchisee, an affiliate, or the corporation itself.

2. History

2.1 History of the fast food industry

Some trace the modern history of fast food in the United States to 7 July 1912, with the
opening of a fast food restaurant called the Automat in New York. The Automat was a
cafeteria with its prepared foods behind small glass windows and coin-operated slots.
Joseph Horn and Frank Hardart had already opened the first Horn & Hardart Automat in
Philadelphia in 1902, but their "Automat" at Broadway and 13th Street, in New York City,
created a sensation. Numerous Automat restaurants were built around the country to deal
with the demand. Automats remained extremely popular throughout the 1920s and
1930s. The company also popularized the notion of "take-out" food, with their slogan
"Less work for Mother".

The first hamburger chain in the States was White Castle opened in 1921. It was opened
by Billy Ingram and Walter Anderson, who started with the first White Castle restaurant in
Wichita in 1916. They had a small menu which had cheap hamburgers and they sold it in
large numbers. The first franchises appeared also in 1921 (A&W Root Beer franchised their
syrup) and the first restaurant franchise appeared in 1930s by Howard Johnson.

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2.2 Present Position of the industry

Globally, fast food generates revenue of over $570 billion - that is bigger than the
economic value of most countries. The quick service restaurant (QSR) industry in the
United States was said to be worth a sum of approximately 256 billion U.S. dollars in 2018.
In the United States revenue was a whopping $200 billion in 2015 - quite a lot of growth
since the 1970 revenue of $6 billion. The industry is expected to have an annual growth
of 2.5% for the next several years - below the long term average but coming back from a
several year slump.
While the U.S. fast food landscape has been inundated by new concepts over the past
decade, well-established U.S.-based QSR brands are continuing to grow. Although the
U.S. market may be becoming saturated, household brands such as McDonalds show no
signs of slowing their growth - expanding their reach to international locations. With a
brand value of over 126 billion U.S. dollars, McDonald’s was by far the most valuable fast
food brand in the world in 2018, surpassing its closest competitor Starbucks by almost
triple. In 2018, McDonald’s was also the largest fast food company in terms of system
wide sales, followed by brands such as Starbucks, Subway and Yum! Brands - parent
company of Taco Bell, KFC & Pizza Hut

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There are over 200,000 fast food restaurants in the United States and it is estimated that
50 million Americans eat at one of them every single day. The industry employs over 4
million people and counting - restaurant franchises added over 200,000 jobs in 2015.

Segment Market Share

Hamburger-focused restaurants 30%+

Pizza parlours 15%

Sandwich shops 12%

Chicken restaurants 8%

Mexican restaurants 7%

The fast food industry keeps growing despite the general public’s newfound surge to go
organic and healthy. McDonald’s is the most popular in this field, no surprise there,
although one data below puts it in an interesting perspective.

 The fast food industry revenue in the US alone makes about $110 billion annually.
(Staticbrain)
 50 million Americans eat fast food every day (Staticbrain)
 A complete fast food meal is 37% of your daily calories (Static Brain)
 McDonald’s is more recognized than the Christian Cross. (Marketingweek)
 Fast food restaurants are expected to keep growing at 2% annually through 2020.
(Statista)
 There are nearly 200,000 fast food franchises in the US as of 2018 (Statista 2018)

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2.3 Current Position of the McDonalds

McDonald’s (NYSE: MCD) released its full year results on January 30, 2019. The company
beat the consensus earnings but missed slightly on revenue for the 4th Quarter. This is
primarily due to the refranchising of its restaurants that the company has been
undertaking for a couple of years. The company’s long-term goal is for 95% of McDonald’s
restaurants to be owned by franchisees, and at the end of FY 2018, this figure stood at
92.7%. Overall the company posted revenue of $21.03 billion with earnings of $7.50, up
18% year on year as the strategy has also helped them in cutting down costs and thus
improving margins. Global comparable sales also improved by 4.5% YOY.

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 McDonald’s history is divided in some stages of the last century. These years are –

· Early the beginning of McDonalds 1940s

The business began in 1940, with a restaurant opened by brothers Richard and Maurice
McDonald at 1398 North E Street at West 14th Street in San Bernardino, California.

 Modern Era of MacDonald’s 1950s-1960s

The first McDonald's with the arches opened in Phoenix, Arizona in March 1953. The
original mascot of McDonald's was a man with a chef's hat on top of a hamburger-shaped
head whose name was "Speedee". In 1962, the Golden Arches replaced Speedee as the
company symbol. A new mascot, Ronald McDonald, was introduced in 1965. The clown-
like man having puffed out costume legs appeared in advertising aimed at children.

 The Growth Stage of MacDonald’s 1970s-1990s

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McDonald's spectacular growth continued in the 1970s. Americans were more on-the-go
than ever, and fast service was a priority. In 1972, the company passed $1 billion in annual
sales. By 1976, McDonald's had served 20 billion hamburgers, and system wide sales
exceeded $3 billion. During the 1980s, a period of substantial expansion, McDonald's
further diversified its menu to suit changing consumer tastes. The company introduced
the Chicken in 1980; it proved to be a sales disappointment, and was replaced with
Chicken Nuggets a year later (having originally been invented by Rene Arend in 1979). In
1985, ready-to-eat salads were introduced. Efficiency, combined with an expanded menu,
continued to draw customers. McDonald's began to focus on urban centres and
introduced new architectural styles. The first McDonald's Express locations opened in
1991. The first McDonald's in Mainland China opened in Don Men in October 1990.

 The Global stage of McDonald's Corporation 2000s-2015s

As it was exploring new avenues of growth, however, McDonald's core burger chain had
become plagued by problems. Most prominently, the Made for You system backfired.
Although many franchisees believed that it succeeded in improving the quality of the
food, it also increased service times and proved labour-intensive. Some franchisees also
complained that the actual cost of implementing the system ran much higher than the
corporation had estimated a charge that McDonald's contested. In any case, there was no
question that made for you failed to reverse the chain's sluggish sales. Growth in sales at
stores open more than a year (known as same-store sales) fell in both 2000 and 2001. Late
in 2001 the company launched a restructuring involving the elimination of about 850
positions, 700 of which were in the US, and several restaurant closings.

In May 2010, McDonald's redesigned its US website to a sleeker, HTML 5 friendly interface.
Along with those changes, McDonald's also introduced new advertising material to its
website, including the unveiling of new pictures used exclusively for in-restaurant ads,
television commercials, print advertising, and online advertising, which consist of more
realistic pictures of its products, which are now up close and face the camera instead of
facing left or right.

In January 2012, the company announced revenue for 2011 reached an all-time high of
$27 billion, and that 2,400 restaurants would be updated and 1,300 new ones opened
worldwide.

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 3. List of McDonald's Products

1. Hamburger 3. The Happy Meal

1. Double Cheeseburger
2. Triple Cheeseburger 7. Breakfast
3. Big Mac Quarter 1. McMuffins
4. Pounder 2. Breakfast Sandwiches
3. Bagels
5. Big N' Tasty
4. Breakfast Wraps
6. McDouble
5. All Day Breakfast
7. Bacon McDouble
8. Daily Double 6. All Day Lunch
7. Additional Breakfast Items
9. McFeast

8. Beverages
2. Chicken
1.
1. McChicken 2. Soft Drinks
2. McNuggets 3. Coffee and tea
3. Premium Chicken 4. Shakes
Sandwiches 5. Alcoholic Beverages
4. Premium Chicken Deluxe 6. Frozen Beverages
5. Grilled Chicken Deluxe
6. Tasted Crafted
7. Deli Choices 9. Desserts
8. Snack Wrap
9. Premium Chicken McWrap
10. Chicken McBites
11. McArabia
12. Buttermilk Crispy
Tenders
13. Other notable chicken
products

3. Fish
4. Pork
5. Sauces
6. Other Products
1. Salad
2. Sides

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4. McDonalds Competitors  6) Domino's.
 KFC.  7) Dunkin' Donuts.
 2) Burger King.  8) Wendy's.
 3) Subway.  Taco Bell
 4) Starbucks.  Chipotle
 5) Pizza Hut.

5.0 How McDonald’s training initiative are aligned with business strategy & the
importance of establishing business strategy-training linkage?

Yes, the objective of training initiatives taken by McDonald’s are aligned with business
strategies.

The employee who receives the necessary training is more able to perform in their job.
The training will give the employees a greater understanding of their responsibilities
within their role and build their confidence. This confidence will enhance their overall
performance and this can only benefit the company. Employees who are competent and
on top of changing industry standards help your company hold a position as a leader and
strong competitor within the industry. When training aligns with the business, employees
at all levels understand expectations, operationalize vision and values, and recognize what
is necessary to succeed. Conceptually, it is not hard to truly align training with the business
needs, but it requires a good deal of work.

The objectives of training initiatives taken by McDonald’s are mostly aligned with business
strategies. From the organizational perspective, this represents a successful and on-going
initiative. Most importantly, the initiatives are emphasized on the increment of the level
of customer satisfaction. This is essential for a business goal of creating value around the
employees, a measurable value and a sense of competitive differentiation. HR functions
have always served as a supporting tool to the strategic levels. The design and
implementation of the strategic option chosen by the company depends basically on the
human factor. Mr. Ray Kroc wanted a restaurant system that would be famous for
providing food of consistently high quality and uniform methods of preparation. He
wanted to serve food that tasted the same at wherever the restaurant may be. In 1955, he
founded the McDonald’s System, Inc. – the core of McDonald’s principles of Quality,
Service, Cleanliness and Value (QSCV) – which lives on as the Company’s foundation to
this day.

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In McDonald the business strategy for the company is to make food fast available to its
customers at a very low competitive price but to get profit as well by reducing the cost of
the product and expanding the business worldwide. For McDonald the training was that
important that they actually created “Hamburger University”. They train their employees
through arranging classes shift wise in crew rooms or inside restaurant. However, for
managerial level, they have management training center where the managers progress
through hundreds of training days. The management training includes: Employee relation
training, staff retention & discipline, Time management, learning to manage shifts,
personal leadership & effective coaching, Employee communication, Community image,
managing staff development, Optimizing restaurant food cost, Accounting & financial
procedures etc.

Importance of business strategy-training linkage:

Helps the Firm’s Preparation for New Opportunities and Threats

Improving the Firm’s Productivity and Efficiency

Helps Firms to be unique around industry

Helps the Firm to innovate new things

Increases Firm’s Competitive power

Building a Brand Reputation

Maintaining a Competitive Advantage

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6.0 Examine: Ray Kroc’s Training Philosophy. How gas McDonalds gained from this
philosophy?

Kroc’s Philosophy
McDonald (MCD) has one agenda providing 100% total consumer satisfaction. The
formula through which McDonalds seeks to achieve this goal in the restaurant operation
is the long-standing commitment to Q, S, C, V that is Quality, Service, Cleanliness and
Value. Well trained crew and managers are the first step to achieving these standards. It
is a company policy to provide career opportunities that allow employees to develop their
full potential. This include a comprehensive training program for crew and career
progression that enables a first job employee to progress though to a senior management
position through merit based promotion.

McDonalds is an organization that demonstrates a strategic commitment to training.

From the very early days Ray Kroc the founder of the McDonalds was prepare to invest a
great deal of money in training staff. The company attitude to training and development
today can be traced straight back to Kroc’s philosophies and belief learning and work. In
this course he avoided recruiting people who wanted to do it their way, the way that they
had learned through their formal training in catering. Instead, he saw a different mix of
dedication, entrepreneurship and wider skills in service and quality as the right type of
skill mix. He freely admitted to “putting the burger in the assembly line”, a process where
traditional catering and restaurant were obsolete. His “Try anything” philosophy delivered
McDonald’s as a national brand

The current training methods and strategies that the McDonald’s follow now is a better
reflection of Kroc’s philosophy. All the development plan at McDonald’s stem from the
same essential principles that Kroc’s introduced in 1950s, i.e., quality, service, and
cleanliness. Kroc’s philosophies helped McDonald’s in achieving better employee and
customer satisfaction and drastically reduced staff turnover rate.

McDonalds Currently following

Philosophy of Career Development at McDonald’s

Career Development at McDonald’s combines a focus on personal growth and

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development with talent management objectives in order to help employees to perform
at their very best – while experiencing personal career satisfaction

Learning and Development Philosophy

At McDonald’s® they offer the opportunity to “learn while you earn”. Learning and
development are an important part of ones McDonald's work experience and starts as
soon as a member join the team. Crew trainers, managers and other employees will work
with that person to show him/her the ropes, and training continues as he/she advance
through the McDonald's system. We work hard to promote a positive coaching
environment to help you develop to his/her full potential. In addition to gaining skills and
knowledge in the foodservice and hospitality industry, his/her job at McDonald's will help
him/her learn teamwork; leadership, communication and guest service skills; responsibility
and time management.

McDonalds believe in giving an employee the tools he/she need to succeed, whether it’s
the chance to run his/her own restaurant or succeed in a corporate career at McDonald’s.
To be the best company they can, they have to offer the best opportunities, and they
believe that the best are right here.

All are done for ensuring the customer satisfaction. McDonalds which a strong tradition
of and belief in training invest more than $1 B annually. However it is not training as we
know or might expect it.

Hamburger University

Ray launched a training program, later called Hamburger University. McDonalds

Hamburger University first open in the basement of a restaurant in Elk Grove, in 1961. It
was initially aimed at Kroc’s growing number of franchisees, a learning process through
which he could assert control over his cherished standards of quality, service, cleanliness
and value.

There, franchisees and operators were trained in the scientific methods of running a
successful McDonald’s. Hamburger University also had a research and development
laboratory to develop new cooking, freezing, storing and serving methods. Today, more
than 80,000 people have graduated from the program.

Since its inception, training at Hamburger University has emphasized consistent

restaurant operations procedures, service, quality and cleanliness. It has become the

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company’s global center of excellence for McDonald’s operations training and leadership
development.

At McDonald’s, their training mission is to be the best talent developer of people with the
most committed individuals to Quality, Service, Cleanliness and Value (QSC&V) in the
world.

McDonalds founder Ray Kroc once said, “If we are going to go anywhere, we’ve got to
have talent. And, I’m going to put my money in talent.”

Hamburger University continues to promote that philosophy, every day.

Training of taking order:

When taking an order individual should greet the customer.

Example: Welcome to McDonalds, May I take your order?

Take the order, every once in while ask anything else or will that be all?

When customer finish ordering verify the order is correct by having them read their order
on the screen as shown on the right. This is especially important if they added specification
on their order.

Example: Is your order correct on the screen?

Tell the customer their total and say “Thank You”

Through this way McDonalds avoid conflict in ordered item by customer. Customer will
highly satisfied by this behavior which is Kroc’s philosophy is maintain by McDonalds till
now.

Clean
At McDonald's is clean freaks. Each restaurant has a dedicated team of trained customer
care staff who ensure the dining areas, including any children's play equipment, are kept
exceptionally clean at all times. All McDonald's employees receive comprehensive training
on cleaning procedures, and each restaurant has a schedule of daily, weekly and monthly
cleaning tasks so we're always on top of it.

All of our restaurants have planned maintenance calendars and all kitchen equipment is
cleaned throughout the day, with daily, weekly and monthly closedown and cleaning
procedures to maintain our high standards of safety and cleanliness.

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A clean shaven appearance is preferred. Beards, moustaches and sideburns are allowed
but should be short, neat, tidy and clean. If your beard cannot be trimmed for genuine
religious, cultural or medical grounds or if you’re handling food, e.g. working in the
kitchen, on fries or in the beverage cell, you must cover your facial hair with an approved
beard net / snood (this includes stubble). If you can’t cover your facial hair completely, it’s
not allowed.

Grill Clean up

In McDonald’s, the grill is constantly used to make hundreds of burgers all day. Because
the grill is used so frequently, employees must clean it at least twice a day and scrape the
top to avoid serving dirty food to costumers. When cleaning the grill, avoid all distractions
because the grill is very hot and you can get severely injured.

Floor Clean Up

Dirty floors are the number one cause of injuries in McDonald’s. Most employees do not
know that when the grill is being used, oil splashes onto the ground making it dangerous
for the employees to fall down. Providing safe and clean floors can reduce the amount of
injuries and increase customer satisfaction.

Kitchen Countertop clean up

It is very important to maintain the kitchen tables clean. The kitchen countertops are also
called work stations where all the meals are put together and then wrapped to give to the
waiting customer. If the stations are dirty, the food that is being made there will be dirty
and the customer will be upset. The work stations must be clean in order to have clean
food and satisfied customers.

Quality

McDonalds pays more attention on the satisfaction level of their customers. To improve
the quality standards, the employees are well trained and continuously learning desire of
McDonald’s results to increase the level of satisfaction of their customers towards their
products. When the quality is improved and the workers are serving the customers is well

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trained and the overall service environment is improved then there is no room left for
customer to fell dis-satisfaction towards the company

100% BEEF PRIME CUTS

Beef patties are made from 100% high quality beef that originates from European farms,
the majority of which are in Italy. McDonalds only use cuts of the highest quality boneless
muscle meat from the flank, forequarter and hindquarter of cattle.

100% CHICKEN BREAST MEAT

McDonalds only use chicken breast meat, and that’s true whether it's a burger, our Selects
or Chicken McNuggets. Why is this important? Because great tasting food made with
quality ingredients is one of our top priorities.

RED, PLUMP TOMATOES

Planted and monitored from seed to fruit, McDonalds tomatoes are grown according to
the highest farming standards. This ensures that our juicy tomatoes are of high-quality
and are produced in a healthy and sustainable manner.

LEAFY GREENS & FRESH ONIONS

McDonalds use the finest Iceberg lettuces with mild flavour and crunchy texture and the
highest quality onions to prepare our tasteful burgers in all McDonald’s restaurants.

A SIGNATURE COFFEE

McDonalds specifically designed espresso is made from a blend of the highest quality
coffee beans selected from ecologically sustainable Rainforest Alliance Certified farms.

High quality baked buns

Buns are sourced from suppliers who use the highest quality wheat. Strict quality and
safety are used throughout all of the production process.

No compromises

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The restaurant chain gives high importance to small details including, meats, spices, etc.
and everything is standardized to a high level

Wholesome dairies – Only fresh milk is used and always from safety standard approved
regional and local suppliers.

McDonalds uses the HACCP (Hazard Analysis & Critical Control Point) quality control
system. This is applied to keep food safety and standards at their absolute highest. This
ensures quality throughout all stores. Values

Value
From the start, they have been committed to doing the right thing. And every day, all
around the globe, they put people, processes and practices into place to make quality
food, more responsible sourcing choices, a stronger community and a better planet. In
accordance with our McDonald’s values.

"It is the value piece that drives the behaviors and drives the whole underlying culture
that exists at McDonald’s"--Len Jillard, Chief People Officer for McDonald’s Canada

To keep it really simple, in terms of a crew person coming in, the number one value, or
the first value, is to put the customer at the core of all they do. That makes it really simple
to explain to a crew person at the front counter, or in drive through, what the job is. The
customer comes first. Make sure that whatever you’re doing with that guest coming in is
that you’re taking care of them. If there is something wrong, cold fries or a wrong soft
drink, or whatever, just go ahead and replace it, because the customer is the most
important priority.

Responsible Leadership

McDonalds are committed to using our scale for good: good for people, for our industry,
and for the planet. From simplifying ingredients to being nutritionally mindful; from
reducing their waste impact to advancing the industry on sustainable and humane
sourcing
Progressiveness
McDonalds are a restless company: always innovating, always moving forward. From our
original business model to the invention of the drive thru and the Happy Meal, they are
working to do things better tomorrow than we do today
Local Integration

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McDonald’s has traveled far but stay in sync with society in each of countries,
responding to local needs and integrating with local culture. Their restaurants are
typically locally-owned, staffed by crew who live nearby, and who proudly give back to
their community via hundreds of thousands of local programs.
Service

McDonald’s value proposition is that their food is served quickly and of constant quality
across different places and countries. The planning and organizing of McDonald’s business
resources had revolved around their value proposition when they re-innovate their service
design in order to ensure their success. While doing so, they probably had business model
canvas and service blueprint on their hands

7.0 Discuss how McDonald’s strategic commitment to training has contributed to

its position as a leading global food server retailer

McDonald’s strategic commitment to training to its position:

McDonald’s believes that the success of the restaurants and the company is
achieved through the people it employs. The company aims to recruit the best people to
retain them by offering relevant training programs for different positions.

The First stage of training at McDonald’s is at the welcome meetings.

All new employees are inducted into the business though a welcome meeting which they
must attend.

Welcome meetings are followed by a structured development program that provides

training in all areas of business.

Purpose of welcome meeting:

Set out the company’s standards and expectations.
Overview of the company.
Job role.
Food.
Hygiene.
Safety training.
Policies and procedures.
Administration.
Benefits.

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 Training and development.

The Objectives of Training:

The objectives of training initiatives taken by McDonald’s are aligned with business
strategies. From the organizational perspective, this represents a successful and on-going
initiative. Most importantly, the results can be seen in feeding through to levels of
customer satisfaction. This is essential for a corporate goal of creating value around the
employees, a measurable value and a sense of competitive differentiation, or as
McDonalds says, ‘unlocking the power of our people’. HR functions have always served as
a supporting tool to the strategic levels. The design and implementation of the strategic
option chosen by the company depends fundamentally on the human factor.

Values:

We place the customer experience at the core of all we do.

We are committed to our people.
We believe in the McDonald’s system.
We operate out business ethically.
We give back to our communities.
We grow our business profitably.
We strive continually to improve.

Training and Management Development:

After the induction program the employees go through an individual
training program.
There is no set time limit for these on -the – job training plans.
The tightly controlled process is called the ‘one best way’. It covers all areas
of business, from meeting and greeting, to food preparation, to cleaning
the floor.
To reduce monotony in the process, crew members are rotated through a
number of different roles.
Training is delivered and assessed through a variety of methods such as
‘shoulder to shoulder’, ‘classroom programs’ and ‘e-learning modules’.

Importance of business strategy-training linkage:

Training helps the Firm’s Readiness Preparation for New Opportunities and Threats.
Training Impacts the Firm’s Productivity and Efficiency.
Training Helps Firms Differentiate Themselves in the Marketplace.

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 Training helps the Firm to innovate new things.
The Integration of Training in the Firm’s Business Strategies Increases the Impact
of Training on the Firm’s Competitiveness.

Orientation and Induction:

Welcome Meetings
Structured Development Program
Floor-based or on-the-job training as people learn more while practicing.
Classroom –based training sessions where they complete workbooks for
quality, service and cleanliness.
The employees are rated after three months on their performance and they
are either retained or have their employment terminated.

Training and development provides:

Employee Development (Job Fit).
Maintaining Better Connection with Diverse Customer Base.
Enhancing personal and professional effectiveness.
Building skills for management in inclusive and diverse workforce.
Improves employees satisfaction level.

Kroc’s philosophies:
The company’s attitude to training and development today can be traced straight back to
Kroc’s philosophies and beliefs about learning and work. Kroc’s focused mainly on quality
standards, services, cleanliness and value. In this course he avoided recruiting people who
wanted to do it their way, the way that they had learned through their formal training in
catering. Instead, he saw a different mix of dedication, entrepreneurship and wider skills
in service and quality as the right type of skill mix. He freely admitted to “putting the
burger in the assembly line”, a process where traditional catering and restaurant were
obsolete. His “Try anything” philosophy delivered McDonald’s as a national brand.

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The current training methods and strategies that the McDonald’s follow now is a better
reflection of Kroc’s philosophy. All the development plan at McDonald’s stem from the
same essential principles that Kroc’s introduced in 1950s, i.e., quality, service, and
cleanliness. Kroc’s philosophies helped McDonald’s in achieving better employee and
customer satisfaction and drastically reduced staff turnover rate.

OCL (Observation Checklist):

Training Grades.
Employee Satisfaction.
Proportion of Fully Trained Staff.
Customer Satisfaction.
Improvement in customer services.

8.0 How relevant is training and development for a company like McDonald which
is seen as ‘deskilled’?

Every fast food chain, especially McDonald’s belongs to the Food & Beverage (F&B)
sector. These sectors generally play an essential role in the development of any
organization, especially the development of services is very important. In order to provide
abundantly good service, the employees should be in need of intense training, and that’s
how training comes into the scenario. Therefore, training and development are
intertwined to each other in most cases. Now let’s go through how McDonald’s used these
concepts.
In a very limited span of time, McDonald’s formed huge visibility and developed
internationally. Not only does this fast food chain offers a cheap, clean and very
convenient food and captured everyone’s attention to them, but they have also formed
few drawbacks as well which are briefly explained below:

To capture a significant portion in the market the firm targeted young generation,
especially children or known as the future buyers. Therefore, by offering fast food they
are calling upon many unknown and also unavoidable problems which occurs mostly for
having too much fast food, such as, obesity, asthma, mad cow, heart diseases and many
more. Advocating such practices then what kind of message are we sending to our
children’s “at least 59 of the nation's 250 children's hospitals have fast-food restaurants?”
(Tanner, 2006).

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2. McDonald’s generally use genetically modified potatoes in spite of locally grown
potatoes, which further proves that these food products are unsafe and lacks in the
nutritional aspects. Thus, we can once more say that the practice itself is problematic.
3. Another problem found is that the McDonald’s use beef in their menu abroad which
the firm brings from various other farms. If at any circumstances or in any time the
customer feels like being aware of the quality and raise the question on the quality of the
food (beef item) they might face difficulty to trace the origin of the beef or the farm from
where they brought the raw material from. Suspicion may rise and the possibility that the
food item may be contaminated in any way will be more of an issue, and in that case the
origin will be unknown, “a typical fast-food hamburger patty contains meat from more
than one thousand different cattle, raised in as many as five countries” (Schlosser, 2004).

With respect to the cultural issues, McDonald's was drawn in the media for a long time in
many countries. In China, the firm disregarded their cultures through some of its actions.
In several other countries like the USA, Japan and many more the firm provoked and upset
many vegetarians. “McDonald's, the fast-food giant currently embroiled in a row
concerning undisclosed beef flavoring in French fries, has made a formal apology to those
it has offended” (McDonald’s resolves French fry dispute, 2002). Even though it may seem
like a very small issue but in reality, the firm had made a mess for the customers who are
known for worshipping cows and consider them as sacred. So imagine what it might have
felt to them and thinking about eating beef might mean for them.
The issues mentioned above are a few examples of how McDonald’s is seen as “deskilled”.
Hence, universities offering hotel management course must teach other promising chefs
the difference between “what is right and what is wrong”. Proper training and
development of the individual is a must and it can make a significant amount of difference
to organizations like McDonald’s.

9.0 Discuss the training and management development process at McDonald's with
respect to its design, purpose, methods and content. What org cultural goals does
it help McDonald’s achieve? Evaluate McDonald’s T&D process based on your
understanding of the process of training.

Human Resource plays a major role in McDonald’s. The key objective of training their
human resource is to keep a balance in the employees’ overall work. Therefore, they try
hard to generate a good connection between the capability of the employees and the

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quality of the product. Almost every worker in McDonald’s get training for their respective
work position. Even a floor manager is cultured against his degree in hotel management,
a cashier is trained for cash handlings. Accordingly, all the other workers are also trained.
The training & development process of McDonald with respect to its design, purpose,
methods, and content share

Design: -McDonald’s training and development program is designed in a way that every
employee enters or entered are given severe training immediately when they are hired.
Whether the employees belong to managerial posts or restaurant staff they have to go
through their training process. Some training processes they follow are:

Orientation & induction:

1. Welcome meetings

2. Structured development program

3. Floor –based or on-the job training as people learn more while practicing.

4. The employees are rated after three months on their performance and either retained
or have their employment terminated.

Training and management development:

1. After the induction program the employees go through an individual training program.

2. There is no set time limit for these on –job training plans.

3. To reduce monotony in the process crew members are rotated through a number of
different roles.

4. Training is delivered and assessed through a variety of methods such as “shoulder to

shoulder” ‘classroom programs ‘ and e –learning modules.

Purpose:

McDonald’s training and development process is an imperative contribution to the

company’s aims to achieve 100% consumer satisfaction goal. This may take place in
certain stages. Initially, the employees receive an orientation of the work area which is
known as induction stages. Later, McDonald’s operate on and off job training for new

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employees. Moreover, McDonald’s also look forward to insist control and maintain high
standards of quality, service, cleanliness and value.

Method: McDonald’s have a standard method of performing each job. Ray Kroc believed
in training employees by providing them incentives and giving them freedom to bring
creativity. McDonald's is well-known for giving chances to minorities.

1. On the job training

2. Classroom – based training sessions
3. Job analysis

Content:

1. Employee relations training

2. Time management

3. Staff retention and discipline

4. Leadership

5. Accounting & financial procedures

6. Optimizing restaurant food cost

7. Employee communications

Organizational goals:

Provide 100% customer satisfaction through quality service cleanliness and value.

Evaluation of T&D process:

It has been observed that the restaurant where the manager takes a hands-on approach
to training, the performance is good. Effective and regular training also brings benefits
like employee satisfaction which in turn enhances customer ratings, and lower staff
turnover

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 10. Conclusion

McDonald's is one of the biggest fast food organizations on the world. They proceed with
their way for progress by remembering their customer regarding their product selection
and price. They urge their employees to work admirably, usually promote and offers a few
grants to empower employees. McDonald's has been fruitful in light of the worth the
organization gives for its customer and employees. McDonalds is intense on training
managers. This organization has its very own program to prepare administrators the most
expertly, which is Hamburger University. Therefore, McDonalds has numerous great
supervisors who can help organization advancement well. In fact, McDonald's is a learning
association, one that is happy to learn and open to change.

11. Recommendation
 McDonalds should focus on working flexibility because NOT LOVIN' IT
 Disgusting video which went viral shows ‘McDonald’s worker using paper cup to
scoop urine out of toilet into sink’
 Ability to differentiate experience that balances consumer value with margins
 Motivate employees to achieve high service levels in order to improve customer
perceptions.
 The success of new menu initiatives.
 There have been several studies and some criticism surrounding McDonald’s, on a
broad range of topics such as food quality and treatment of employees. All of these
contribute to changes in consumer perception of McDonald’s and its food.

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Reference

https://www.thesun.co.uk/news/7619786/mcdonalds-worker-paper-cup-urine-toilet-
sink-video/
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trends/

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f

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