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Human Resource Practices In McDonalds

Table of content
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Executive Summary Concept Of HRM Introduction To Hotel Industry McDonalds The Company Mission Vision History Of McDonalds Organizational Chart Business Of McDonalds SWOT Analysis Departments In McDonalds Human Resource Department Job Analysis Recruitment And Selection Orientation And Training Performance Appraisals Compensation Management Conclusion Recommendation Glossary

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Human Resource Practices In McDonalds

This project is about Mc Donalds Pakistan, which is one of the largest and the best-known global food service retailer with more than 30,000 restaurants in 121 countries serving 47 million customers each day. First we have studied a brief history of the company worldwide. Then we have introduced McDonalds Pakistan, the organizations strategies and its structure.

Basically, this project aims to have an overview of the McDonalds human resource management. The different functions at the disposal of HR include provision of different laws for the protection of employees rights. Strategies for the development of the organization, job analysis for the hiring of new employees, personnel recruiting, employee testing and selection, performance appraisal are also integral parts of HR.

These all functions are described in context of McDonalds Pakistan. This will help better understanding the different processes involved in HR functionality.


Human Resource Practices In McDonalds


What exactly is 'Human Resource Management'? Many people find HRM to be a vague and elusive concept because it seems to have a variety of meanings. This confusion reflects the different interpretations found in articles and books about 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 "partners" rather than as opponents: 'us and us', rather than 'us and them'.


Human Resource Practices In McDonalds


One of the fastest growing sectors of the economy of our time is the McDonalds industry. The McDonalds industry alone is a multi-billion dollar and growing enterprise. It is exciting, never boring and offer unlimited opportunities. The McDonalds industry is diverse enough for people to work in different areas of interest and still be employed within the McDonalds industry. This trend is not just in Pakistan, but also globally. Modern hotels provide refined services to their guests. The customers or guests are always right. This principle necessitated application of management principles in the McDonalds industry and the McDonalds professionals realized the importance of marketing principles in managing the McDonalds industry. The concept of total quality management is found getting an important place in the marketing management of hotels. The emerging positive trend in the tourism industry indicates that hotel industry is like a reservoir from where the foreign exchange flows. This naturally draws our attention on HOTELS MANAGEMENT. Like other industries, the hotel industry also needs to explore avenues for innovation, so that a fair blending of core and peripheral services is made possible. It is not to be forgotten that the leading McDonalds companies of the world have been conducting research to enrich their peripheral services with the motto of adding additional attractions to their service mix. The recruitment and training programmes are required to be developed in the face of technological sophistication. The leading McDonalds companies


Human Resource Practices In McDonalds

have been found promoting an ongoing training programme so that the personnel come to know about the use of sophisticated communication technologies.


McDonald's is the largest food service company in the world. It is also one of biggest employers in the United States, with over 1.7 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. Company is expanding continuously, as at December 2000, McDonald's and its franchises operated over 32000 restaurants worldwide in 118 countries and territories, serving food and drab to over 45 million people daily. Only 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 huge income from a single restaurant; most own 2 or more restaurants. Chief executive is Jim Skinner.


Human Resource Practices In McDonalds

Don't worry about making money Love what you are doing and always put the customer firstAnd success will be yours!


Human Resource Practices In McDonalds

Being the best means providing outstanding quality service and cleanliness so that the company makes every customer in every restaurant happy. To achieve this mission

Macdonald's is focused on three worldwide strategies: 1 Be the best employer for the people in each community around the 2. the world.

Deliver optional excellence to the customers in each of restaurants.

3. Achieve enduring profitable growth by expanding the brand and leveraging the strengths of McDonalds system through innovation and technology.


Human Resource Practices In McDonalds

In 1937, Patrick McDonald opened "The Airdrome" restaurant near the Monrovia Airport in Monrovia, California. Hamburgers were ten cents, and allyou-can-drink orange juice was five cents. In 1940, his two sons, Maurice and Richard ("Mac" and "Dick"), moved the entire building 40 miles (64 km) west, to 14th and E Streets in San Bernardino, California. The restaurant was renamed "McDonald's". In 1948, Mac and Dick McDonald introduced the "Speedee Service System", which established the principles of the modern fast-food restaurant. After they realized most of their profits came from selling hamburgers, they closed down their successful carhop drive-in to establish a streamlined system with a simple menu of just hamburgers, cheeseburgers, french fries, shakes, soft drinks, and apple pie. The carhops were eliminated to make McDonald's a selfserve operation. Mac and Dick McDonald had taken great care in setting up their kitchen like an assembly line, to ensure maximum efficiency. In 1953, the McDonald brothers began to franchise their successful restaurant, starting in Phoenix and Downey, California. In 1954, Ray Kroc, a seller of Multimixer milkshake machines, learned that the McDonald brothers were using eight of his high-tech Multimixers in their San Bernardino restaurant. His curiosity was piqued, and he went to San Bernardino to take a look at the McDonalds' restaurant. Believing that the McDonalds' formula was a ticket to success, Kroc suggested that they franchise their restaurants throughout the country. When they hesitated


Human Resource Practices In McDonalds

to take on this additional burden, Kroc volunteered to do it for them. He returned to his home outside of Chicago with rights to set up McDonald's restaurants throughout the country, except in a handful of territories

in California and Arizonaalready licensed by the McDonald brothers. Kroc's first McDonald's restaurant opened in Des Plaines, Illinois, near Chicago, on April 15, 1955, the same day that Kroc incorporated his company as McDonald's Systems, Inc. (which he would later rename McDonald's Corporation). Once the Des Plaines restaurant was operational, Kroc sought franchisees for his McDonald's chain. The first snag came quickly. In 1956 he discovered that the McDonald brothers had licensed the franchise rights for Cook County, Illinois to the Frejlack Ice Cream Company. Kroc was incensed that the McDonalds had not informed him of this arrangement. He purchased the rights back for $25,000, five times what the Frejlacks had originally paid, and pressed forward. McDonald's grew slowly for its first three years. By 1958, there were 34 restaurants. In 1959, however, Kroc opened 68 new restaurants, bringing the total to 102 locations.

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 and 1 in Faisalabad since the company first opened its doors to the people of Pakistan.


Human Resource Practices In McDonalds

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 McNuggets and egg McMuffin 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 that organizations have a role to play in helping communities to work successfully.



Human Resource Practices In McDonalds

Organizational chart in McDonalds



Human Resource Practices In McDonalds

McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 64 million customers daily. Headquartered in the United States, the corporation was founded by businessman Ray Kroc in 1955 after he purchased the rights to a small hamburger chain operated by the eponymous Richard and Maurice McDonald. A McDonald's restaurant is operated by a franchisee, an affiliate, or the corporation itself. The corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27% over the three years ending in 2007 to $22.8 billion, and 9% growth in operating income to $3.9 billion. McDonald's primarily sells hamburgers, cheeseburgers, chicken, French

fries, breakfast items, soft, shakes and desserts. In response to changing consumer tastes, the company has expanded its menu to

include salads, wraps and fruit. We will discuss it in three heads: Products Customers Markets


Burgers Chicken, fish and pork Breakfast Beverages



Human Resource Practices In McDonalds

Desserts Other products

There are a limited number of customers in the market. To build long-term business, it is essential to retain people once they have become customers. Customers are not all the same. Market research identifies different types of customers. For example: A parent with two Visits McDonalds to give the children a treat children Children A business customer Want to visit McDonalds as it is a fun place to eat. Visits McDonalds during the day as service is quick; the food tastes great and can be eaten in the car without affecting a busy work schedule. Teenagers Are attracted by the Saver Menu which is affordable, and the internet access available in restaurants.

Expansions by region

North America Caribbean Central America Oceania Asia

United States Puerto Rico Costa Rica Australia Japan



Human Resource Practices In McDonalds Europe South America Africa

Netherlands Brazil Morocco


o It has a strong global presence and is considered as a market leader in both the domestic as well as the international markets. o It is a global brand that owns 31,000 restaurants serving in 120 countries. Of these 31,000 restaurants at least14, 000 restaurants are situated in the US. o It uses economies of scale for reducing the cost, as its huge expansion diversifies the overall risk involved with the economic performance. o They own an active childrens charity by the name The Ronald McDonald House. o It takes steps in adjusting the Ingredients and product offerings in order to comply with the upgraded health standards deemed necessary by the USDA. o It earns revenue by fast food sales as well as a property investor and a franchiser of restaurants. o It has a firm real estate portfolio. o It has branded menu items i-e Big Mac, Chicken McNuggets, which further promote McDonalds. o It is recognized as one of the worlds most recognized logos. o It is recognized as a socially responsible and community oriented firm. ALQA, IQRA, MARIA B.COM (VI SEMESTER, 2011)

Human Resource Practices In McDonalds o It adapts to the cultural differences regarding the region where the restaurant is set up. o It has located itself in major airports, cities, highways, tourist locations, theme parks. o It has an efficient food preparation style that follows the process in a systematic way. o It takes food safety extremely cautiously. o It was the first to provide the customers about nutrition facts.

o It uses advertising that mostly targets children. o High employee turn-over. o It has yet to accomplish going on the trend of organic food. o Price competition with the competitors resulting in low revenue. o Lack of innovative products

o It can adapt to the needs of the societies and undergo an innovative product line. It can research ways to use green energy and packaging which will work as a part of their promotional effort as well as fulfill their social responsibility. o It can create new product offerings, use mobile text messaging to offer services that appeal to consumers. o It can upscale some of its restaurant settings at luxurious locations to attract more customers. ALQA, IQRA, MARIA B.COM (VI SEMESTER, 2011)


Human Resource Practices In McDonalds o It can provide optional items that are regarded to be the basis of allergy for some. o It can slow down the level of expansion in order to increase the profitability of the organization

o The recession negatively impacts the holding position of the firm regarding its revenue streams, even though they are quite diversified. o Foreign currency fluctuations are regarded to be a major problem as it uses standard pricing for its food items. o More restaurants that are increasing their food offering and declining the price. o Health issues regarding the fast food chain. o Heavy investments on promotional campaigns which decrease the gaining of market share. o Some parents criticize the firms cradle to grave marketing strategy that focuses on kids, who later on take it as a trend to their adulthood. o Sued various times for unhealthy food, usually with addictive additives. o Emergence of major fast food competitors: Burger King, Starbucks. o The expansion has made the firm vulnerable to the slow economies of the other countries.


The departments are classified on accounts of it function. They are as follows:-

1. Core Functioning Department



Human Resource Practices In McDonalds Food and Beverage (F&D) Department:F & B deals mainly with food and beverage service allied activities. This department deals with:

Burgers Chicken, fish and pork Breakfast Beverages Desserts Other products Housekeeping Department:The housekeeping department is another important department in McDonalds. Housekeeping is responsible for cleaning the McDonaldss public areas.

Food Production Department:Food production deals with the preparations of food items. It basically engaged in preparing those dish, which are ordered by the guest and afterwards is catered by the F&B department. Different Chefs are appointed for the specialty cuisine.

2. Support Department (Cost Centers)

Marketing & Selling Department:Sales and marketing has become one of the most vital functions of the McDonalds business and an integral part of modern McDonalds management. It includes packaging for selling, sales promotion, advertising and public relations. The marketing division is charged with the responsibility



Human Resource Practices In McDonalds of keeping the places in the McDonalds occupied at the right price and with the right mix of guests. Engineering and Maintenance Department:The energy crisis throughout the world has given a great importance to the engineering department of a McDonalds. This department provides on the day-to-day basis the utility services, electricity, hot water, steams, airconditioning and other services and is responsible for repair and maintenance of the equipment, furniture and fixtures in McDonalds. The engineering department has an important role in satisfying the guest- demand and helping to maintain the profit level of the McDonalds. The cleaning, up-keep, repair, replacement, installation and maintenance of property and its furnishing, machinery and equipment are the joint responsibilities of

Engineering/Maintenance and the Housekeeping Department. Finance, Accounting and Control Department:A McDonaldss accounting department is responsible for keeping track of the many business transactions that occur in the McDonalds. The accounting department does more than simply keep the books-financial management is perhaps a more appropriate description of what the accounting department does. Whereas the control department is concern with cost control guidelines by way of reducing in investment, reduction in operating cost, control of food service costs, control of beverage costs, labor cost control, etc. Safety and Security Department:The security of guests, employees, personal property and the McDonalds itself is an overriding concern for todays McDonalds. In the past, most security precautions concentrated on the prevention of theft from guests and ALQA, IQRA, MARIA B.COM (VI SEMESTER, 2011)

Human Resource Practices In McDonalds the McDonalds employees. However, today such violent crimes as murder have become a problem for McDonalds. Unfortunately, crime rates in most major cities are rising. Hence today security department also concentrate on these additional criminal activities too. Administration Department:Top organizational members usually supervise the Administration Department in a McDonalds. This department is responsible for all the work connected with administration, personnel, manpower, employees welfare, medical, health and security. Human Resource Development:This department has newly taken step in hotel industry and within a short span of time it has become a very important part of the organization. This department is the topic of our discussion. The practice, which this department and their staff perform, is going to be learned in the light of following project.


McDonalds is divided in to five regions in the world, which are further divided into sub regions. As this organization is internationally owned, so all its decision is taken from the head office, but they are somehow changed to suit the different cultural backgrounds of the region. As an organization is known by its well groomed and intelligent staff at to support and maintain its best quality at every level, So McDonald is also very



Human Resource Practices In McDonalds

careful when hiring for an employee. For that reason, its HR department is very efficiently working to make sure the best is hired. Here 95%of the workforce is restaurant based while 5%of it is in the official running of the organization. McDonald's HR department takes credit for chain's success. McDonald's HR chief David Fairhurst has insisted that his department can take "significant" credit for the fast-food giant's success this year. The company this month announced plans to hire 4,000 more workers to cope with an extra 2 million customers per month. McDonald's served 40 million people in July, up from 38 million in the same month last year, and Fairhurst said better people management was a major factor in the increase. Other influences included the economic downturn, healthier menus and modernized interiors, he said. "Without a doubt, consumers are feeling the pinch [of the economy] and are questioning whether they need to spend 3 on a Starbucks coffee, or 100 on a family meal at a pub," he told Personnel Today. "There have also been menu improvements, and the restaurants look very different. "But there is a strong correlation between a store's results and the quality of that store's managers and training. HR has invested 15m a year on training and delivering confidence and competence. The people element is a significant contribution." McDonald's has launched a poster campaign in stores and at high-profile advertising spots to fill the 4,000 posts.



Human Resource Practices In McDonalds

Fairhurst denied that the recruitment campaign - entitled 'My McJob' - was an admission of the failure of his campaign to get the term rewritten in dictionaries. "McJob has tremendous equity as a word," said Fairhurst. "We're using that equity to change perceptions, so rather than a failure, that campaign has been a success."


As HR activities grow in scope and complexity, many duties, such as recruitment and selection, performance appraisals, training, discovering unassigned duties are delegating to the HR department. But HR specialist does not know the details of job as well as operating managers do. Knowledge about job and their requirement must be collected through a process known as job analysis.

McDonalds Cook Job Description

Being a cook at McDonalds requires no formal training but applicants must know the basics of cleaning and preparing the food areas, the utensils, and various cooking surfaces. Aside from cooking the food, cooks are also expected to properly package all the batches of food that they have prepared, such as; hamburgers, French fries and chicken nuggets, and also keep them warm until the food is sold. Extra responsibilities include maintaining sanitation and safety standards in the work area. As a cook, he or she is also expected to know how to operate large volume cooking equipment like burger grills, fryers, and/or



Human Resource Practices In McDonalds griddles. They also need to verify that the prepared food meets the companys standards, in terms of quality as well as quantity. As job analysis is the process to understand the responsibilities of the job and in McDonalds it is done in these different ways:

Employees fill questionnaires in every 2nd month to know the performance of the restaurant so that information about duties, responsibilities and activities of a job can be gathered.

Observation is also a way to gather the information about a job and to achieve different satisfaction levels.

Hiring process
Once the firm has determined its staffing needs, it takes every possible step to hire the best employees so as to fill the available positions. The hiring process has two components: Recruitment. Selection At McDonald, Hiring is done at two levels: o Trainee Managers. o Crew Members. The difference between both of these is that the training managers are required to learn to smoothly manage the working of the outlet, so they are trained accordingly.



Human Resource Practices In McDonalds

Whereas the crewmembers have shifts for cleaning, counter service and other restaurant jobs.


Recruitment is the process of generating a pool of qualified candidates for a particular job. The firm announces the jobs availability to the market and attracts qualified candidates to apply.

Types of recruitment:
There are two types of recruitment. McDonalds corporation fills its positions by. o Internal sources o External sources

Internal sources:
Filling open positions with current employees are often best source of candidates. At Macdonalds job posting technique is used which means it publicizes an open job to employees (often by literally posting it on intranets and bulletin boards) and listing the job attributes like qualification, work schedule and pay rates

External sources
Eternal sources used by McDonalds are: Advertisement in Newspapers



Human Resource Practices In McDonalds

Advertisements are done in all the leading papers so that every eligible candidate can apply for the job. Advertisement on Web Site Sometimes advertisement is also done on website so that the opportunity cant be missed by anyone. Internships Sometimes students get jobs while doing internship in McDonald.

After advertising for the job in the papers or in any other way when applications are received, these steps are followed:

Screening of Applicants:
After building a pool of candidates applications, short listing of selective applications is done by the HR manager.

Written Test:
The reason for the written test is to assess that whether the recruits are able enough to fulfill the general practical requirements of the job. The HR department designs and conducts the tests as and when hiring needs arises.

Initial Interview:
The ONE to ONE structured interviews are conducted by Restaurant Manager after the written test.

Aptitude Tests
These are those tests, which are done for the training managers.



Human Resource Practices In McDonalds

Reference Checks:
They are to make sure that references provided by the candidates are valid so that no confusion remains.

Final Interview:
Candidates who give the best results are called for the final interview. A panel of five or six interviewers does interview.

After final interview, it is decided which candidates to select for which job to make sure who is the best so that the standard of McDonalds is maintained.


This is a way of direct training which provides new employees with basic background information they need to perform their job satisfactorily. New employees get a handbook: - Working hours - Performance reviews - Vacations - Employee benefits - Personnel policies - Safety measures and regulations The orientation is performed by the HRD Manager and the employees are introduced to their supervisors. There is a different orientation process for every



Human Resource Practices In McDonalds

type of employee. But the common orientation for all the employees is McDonald's People Promise: We value you, your growth and your contributions.

Training and development activities are supplemented with more traditional education and training courses by HR department, universities and private trainers. As more companies expand their international involvement, experience abroad will becomes an even more important development activity. These are concerned with assisting employees to develop up-to-date skills, knowledge and abilities. The employees in McDonald, are provided with training to achieve high standards in the organization. The training period for a crewmember is three months and for others it is one month or 10-15 days. Training involves: Direct Training This is that training which is given directly after the selection so that an employee can understand the position he will be working for and its responsibilities. Training Abroad Different programs are arranged so that other qualified people can train employees at different levels abroad so that they can understand different standards and can improve their own capabilities.

Training Methods:

Human Resource Practices In McDonalds The different methods of Training used by McDonalds are :

On-the-Job Training:
On-the-job training is to train a person to learn a job by actually doing it. Every day, around the world; restaurant members receive on-the-job training and coaching in skills and procedures essential to their work.

Classroom Training:
Classroom courses, developed and led by training experts, prepare outstanding restaurant employees for advancement.

Computer-Based Training:
A new computer-based training system is bringing interactive learning experiences to crew members and managers right in the restaurants.

Levels Of Training:
There are two levels of training at McDonalds:

Crew Members Training:

At McDonald's, training never stops. Crew members are trained extensively on all food safety and food handling processes. Trainees work while they learn the operational skills necessary for running each of the 25 positions in restaurant - from front counter to the grill area.

Managers Training:
McDonald's is dedicated to professional training and development. The average McDonald's restaurant manager spends more than 2,000 hours over four years in training of one kind or another. This is about the same amount of time that a typical four-year college student spends in the classroom.



Human Resource Practices In McDonalds

It is a process by which the performance of an employee is evaluated. McDonalds 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 whether they come up to our standards or not. An OJE (on- job- evaluation) is performed in order to evaluate the employees. If an employee does not perform well then feedback is provided to them so they can improve. The appraisal process in McDonalds includes PA forms for every particular job which involves: - International McDonalds standards. Assessing the employees actual performance relative to these standards.

Providing feedback to the employees.

Levels of appraisals:
There are four levels to evaluate the performance of employees: Out Standing Excellent Good Need Improvement After giving the total grade to the employee the appraiser writes down about the strength and the areas needing improvement of the employee.



Human Resource Practices In McDonalds


1. Cash Based 2. Non Cash Based Cash Based Incentives: Attendance Allowance Annual Allowance Medical Allowance Hard Soft Furnishing [HSF]: Once in every year certain categories of employees can furnish their houses with the carpet, furniture, curtains etc at the McDonalds expense. Leave Fair Assistance [LFA]: Once in two year managerial level employees are allowed to choose any area for tourism in Pakistan with family for 10 days. Non Cash Based Incentives: Crew of the Year Crew of the Month Branch of the Year Access to gift certificates Merchandise Free food



Human Resource Practices In McDonalds

When employee joins the McDonald's management team, he will receive the following: Profit Sharing: Fully funded by McDonald's Share in the profits of the most successful quick service restaurant in the world. Vacation: Increased vacation time per years of service. Leaves: McDonald's employees can also apply and obtain a leave of up to two months for personal reasons or to study for examinations or school projects. Company Car: Restaurant managers are eligible for a company vehicle after only three years of service. Educational Assistance: McDonald's offers an educational assistance program for its employees. Social Activities: Enjoy a variety of activities with his team which could include an annual Convention, summer picnic or outing, Eid Party etc. Uniform: All the employees accept those working in the offices are given uniforms. Flexible hours: The restaurant opens for business 18 hours a day and that means work at



Human Resource Practices In McDonalds

McDonald's can fit into anyone's schedule. Schoolwork, family or personal activities can be scheduled around working hours.

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.

No doubt McDonald's is a huge giant size organization but it also needs some improvements which are McDonald's must start its services for customers as well as product. Job enlargement and job enrichment should be applied for retention of employees. There should be more than one feedback session for improvement of performance of employees. Recruitment must be conducted for higher posts also to select more skilled persons. ALQA, IQRA, MARIA B.COM (VI SEMESTER, 2011)

Human Resource Practices In McDonalds There should be proper and flexible arrangements for training of managerial level employees. Job enlargement and job enrichment should be applied for retention of employees. There should be more than one feedback session for improvement of performance of employees.



Human Resource Practices In McDonalds

SWOT analysis SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. Exit Interview The formal conversation that takes place between an employee and an HR or other manager to determine the reason(s) the employee is leaving. Employee Relations A broad term used to refer to the general management and planning of activities related to developing, maintaining, and improving employee relationships by communicating with employees, processing grievances/disputes, etc. Job analysis
The preparatory stage for writing job descriptions.

Job Description
A written description of a job which includes information regarding the general nature of the work to be performed, specific responsibilities and duties, and the employee characteristics required to perform the job.

Job evaluation
Used for compensation planning purposes, it is the process of comparing a job with other jobs in an organization to determine an appropriate pay rate for the job.

Appraisal An act of assessing something or someone. Recruitment The action of enlisting new people in the armed forces.



Human Resource Practices In McDonalds

A one-to-one process between a manager and subordinate, whereby the former will train the latter. See also Mentoring.

Competency Competency is a determining factor for successful performance Competency-based pay Competency based pay is a compensation system that recognizes employees for the depth, breadth, and types of skills they obtain and apply in their work. Also known as skill based and knowledge based pay. Competitive advantage People are the source of competitive advantage. Other systems in an organization can be copied but not the people in the organization. Contingent workers
Employees who may be: casual labor, part-timers, freelancers, subcontractors, independent professionals and consultants.

Contract for services

An agreement with an independent contractor.

Contract of service
An employment agreement.

Core competencies
The skills, knowledge and abilities which employees must possess in order to successfully perform job functions which are essential to business operations.

Core Labor Force

A small group of permanent workers, for example, strategists, planners.

Corporate mission
The aims and objectives of an organization.



Human Resource Practices In McDonalds

Human Capital
The collective knowledge, skills and abilities of an organizations employees.

Incentive pay
Additional compensation used to motivate and to reward employees for exceeding performance or productivity goals.

The process of introducing a new employee into the organization.

Knowledge, Skills and Abilities - Key Performance Indicators. Tasks that have been agreed between an employee and line manager/HR with an expectation that they will be completed satisfactorily in the time agreed or as an ongoing task.

Mission Statement
A statement illustrating who the company is, what the company does, and where the company is headed.

The reason(s) why a person works at a particular job and for a particular organization. Subject to various theories relating to the way they do things.

Strategic HRM
The process of aligning human resources more closely to the strategic and operating objectives of the organization.