Introduction

McDonald's Pakistan is the Pakistani subsidiary of the international fast

food chain, McDonald's. Its first restaurant was established in Lahore, followed by
a second restaurant a week later in Karachi, in September 1998.
McDonald's Pakistan currently operates 72 outlets across 24 major cities
nationwide, serving millions of customers. Its franchise locations
include Karachi, Lahore, Faisalabad, Islamabad, Rawalpindi, Gujranwala, Peshawa
r, Multan, Hyderabad, Quetta, Sargodha, Bahawalpur, Sialkot, Sukkur, Sheikhupur
a, Rahim Yar Khan, Dera Ghazi Khan, Gujrat, Sahiwal, Abbottabad and Jhelum.
The largest number of outlets is in Lahore, followed by Karachi and Islamabad-
Rawalpindi.
Management of MC Donald’s
 McDonald's restaurant has a quality that it serves its product according to the
culture of that region where they are operating. Several artifacts of modern world
has been very well organized as McDonald’s famous product, promotional plan
with the famed toys and films, its participation in the aid organization and its
dispersion classified adds.

Overall McDonald's planned plan is called plan to succeed. There focal point is not
to be the biggest fast food chain in the world but the finest fast food chain.
McDonald's planned philosophy in the rear this plan is generates recovered
experience through the finishing of multiple proposals immediate the five factor of
incomparable customer understanding. (McDonald's, 2009)
A key element of the McDonald's strategy since the beginning has been to own all
the property on which the MacDonald was built doesn’t matter the property is
franchised or company owned. Rental money differs from property to property but
it has been estimated that McDonald generate more money from its rents of the
property than the franchise fees it charges.

McDonalds leadership and Management

Management is creative problem solving with the desired result of using
organizational resources in a way that accomplishes its mission and objectives.
These results are obtained by four management functions to which we turn next in
context with the McDonalds.

Leadership style in McDonalds

Leadership at McDonalds, the CEO is seen as the focal point from which the
leadership emerges. Jim skinner, the current CEO of McDonalds has been
entertained with this title for the past thirty five years (Dentch, 2009). Skinner is
said to be an excellent leader with charismatic and transformational leader. He has
said to revitalize the organization and introduced a new fast food business with his
new vision.

McDonald’s Operations Management

McDonald’s Corporation’s operations management (OM) supports the company’s
position as the largest fast food restaurant chain in the world. The 10 decisions of
operations management represent the various strategic areas of operations that
must be coordinated for optimal productivity and performance. McDonald’s global
business entails a wide variety of strategic needs for its operations management,
such as strategic HRM and supply chain development. McDonald’s also needs to
address the impacts of tough competition with firms like Subway, KFC
and Wendy’s. To do so, McDonald’s must apply suitable policies and strategies in
all the 10 decision areas of operations management.

Performance management system of McDonalds

McDonald’s uses employees to create a good picture in the minds of employees,
stakeholders, and external customers. This is because they determine the
profitability and financial stability of the organization. The organization cannot
operate without their support and commitment. The employers have to sustain
and monitor the image created in the minds of employees, shareholders, and
customers to ensure profitability that arises from building of true commitment,
self-actualization, pride, and belongingness in true spirit and words.
Human Resource Management
• 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.

• All managers therefore take on human resource responsibilities

• Employees are the most important resources in McDonald's, particularly in

creating a competitive edge.

Functions of HR in McDonalds through which they

successfully improve performance of employees
• policy-making
• welfare
• supportive
• bargaining and negotiating
• administrative

HR PLANNING
• HR planning’s purpose is to determine what HRM requirements exist for current
& future supplies & demands of workers
• To realize the McDonald's service vision, the organization believes in
strengthening their team and ensures to deliver the right skills and knowledge to
the right person for getting the right job done.

HUMAN RESOURCE FUNCTIONS

JOB ANALYSIS
• In McDonald’s job analysis done in order to employee new people every year
• Helps the management to have a better understanding of the jobs
• In McDonald’s they have predetermined standards on which employees are
awarded on the basis of their skills, knowledge and experience

TRAINING AND DEVELOPMENT: • The first stage of

training is at the Welcome Meetings. These set out the company's standards
and expectations. The majority of training is floor based, or "on-the-job"
training
• The employees in McDonald’s are provided with training to achieve high
standards in the organization
. • Training involves-Direct training, Training abroad
• Specific Training Courses- FMC ,MDP,OCC,TCC
Methods Of Training
A)Orientation
 B)On-Job-Training
C)Classroom Training Levels Of Training A)Computer-Based Training
B)Crew Member’s Training
C)Manager’s Training
PERFOMANCE APPRAISAL AND INCENTIVES
SYSTEM OF MCDONALDs:

Performance Appraisals-
• McDonald’s conducts performance review semi-annually.
• Some standards are made and defined according to which the employees have to
perform.
• Then after 6 months all the employees are evaluated that whatever they come up
to standards or not.
• If an employee does not perform well then feedback is provided to them so they
can improve
• There are four levels to evaluate the performance of employees: out standing
,excellent, good, need improvement
Incentives
Incentives in McDonald’s are given to employees on the basis of performance.
Types of incentives:
1. Cash Based
• Attendance Allowance
 • Annual Allowance
• Medical Allowance
• Leave Fair Assistance
2. Non Cash Based
• Crew Of the year
• Crew Of the month
• Branch of the year
• Access to gift certificates
• Free food
Rewards The rewards are given on the basis of the performance There is
arise of 10% in salary and if performance is also counted then 20%increment
given at anytime of the year.
Benefits McDonald’s benefit program
is designed to attract, energize, reward and retain talented people who will
produce superior business results and enhance their leadership position.
MacDonald provided health insurance benefit to its full-time employees. Benefit
communication planning team is designed to include a variety of people from
various corporate departments to ensure adverse representation
Communication planning
The accomplishment of the benefit communication planning team includes: •
Plastic insurance cards with a magnetic strip to automatically bill for
prescriptions. • Coworkers communication programs, which allow a group
of trained employees to explain the program to other workers
Awards/Achievements
• HR Excellence Awards 2009:Best Learning and Development Strategy -
McDonald's Restaurants
• HR Excellence Award 2007:HR Initiative “ The People Project”
• HR Excellence Award 2006:HR Director of the Year –David Fairhust
Performance objectives of McDonalds
Performance objectives are related to operational processes and their basic function
of fulfilling customer’s needs. There are five performance objectives of
McDonalds :
Quality
Most customers are looking for high quality. Every organisation wants to provide
error free products for their customers and gain competitive advantage. Quality
objective leads to certain actions and policies in operations to provide a service that
the customer wants.
McDonald’s serves a variety of nutritious, high-quality food products including
salads, fruits, and vegetables.

At McDonald’s the employees are trained to prepare and present meals according
to very specific procedures that are strictly enforced, especially in the preparation
and handling of raw and cooked products. For example, the ten-minute ‘holding
time’ for sandwiches ensures maximum quality and freshness to each customer.
This means that if the products are not sold within ten minutes from the time of
their preparation, they are discarded. McDonalds meets all the hygiene
specifications, including hand-washing procedures. McDonald’s succeed on the
feedback from the customers to continuously improve the quality & service.
Speed:
Speed is all about how long customers wait before receiving their service
organisation increasing the availability of their products or services if the waiting
time is minimised.
The Operations process is so well designed at McDonald’s that every customer
who comes is served quickly. The company have preparation time set for burger
and other menu items so that the order is delivered within 3-4 minutes. Even
during the busy hours the staff members ensure that the order is delivered on time
to the customer.

McDonalds use different strategy of performance

management
 McDonald’s introduced a specialist central stock management function known as
the Restaurant Supply Planning Department. This team communicates with
restaurant managers on a regular basis to find out about local events. The team
builds these factors into the new planning and forecasting system – called
Manugistics – to forecast likely demand of finished menu items, for example Big
Macs.
Supply planning working Management
Supply Planners working for McDonald’s include range of causal factors in the
calculation of their forecasts, so that based on past performance they can predict
future demand for each restaurant. McDonald’s Restaurant Managers need to
ensure that the data they enter into the system is as accurate as possible. For
example, each day Restaurant Managers record opening and closing stocks of key
food items. They record all other items weekly (McDonald’s Corporation, 2008).
 Inventory management & Controls
Inventory planning and control compensates for the differences in timing between
the supply of an operation’s products and services and the demand for them
McDonald’s method of keeping burger lanes full during peak periods is a
recognizable example of a pull system in a service application.
McDonalds has made billions of hamburgers using elements of just-in-time, from
the time of order from the customers to the payment from them; the burgers or the
meals are ready to be consumed. If they are later than the time ordered, customers
will be dissatisfied. So it is important for McDonalds to use the JIT process in
order to keep quality and satisfied customers.
Total Quality Management (TQM)
McDonald’s goal is simple: to give customers high quality products anywhere in
the world and maintain high standards of service. Every member of the
organisation must be involved from the highest executive to the crewmembers of
McDonalds. The commitment to quality must be instilled into everyone from the
moment they join McDonalds in every dimension of the organisation, e.g.
Operation, Finance, Marketing, Human Resources, Health and Safety and Food
Safety
Conclusion
Good image was important to attract and maintain talented employees in the
workplace to create competitive advantage in McDonalds. The steps taken by the
organization to redefine McJobs was very important in sustaining the long-term
operations of the business. The employer branding initiatives were effective in
communicating to the external audience because it changed the perception of some
of the great influencers in the society like parents, teenagers, and members of the
parliament.
They included creation of career sites, advertising campaigns, projecting opinion
of employees, and promotions. The initiatives targeted on changing the perception
of people on McJobs by convincing them that working at McDonalds had benefits.
The company had to focus on employee satisfaction and present a good image of
its employers. McDonald’s should make employee branding a lifetime strategy to
ensure good image of the company in future, avoid additional costs on campaigns
and promotions, and ensure attraction and maintenance of talented employees.