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REWARD PERFORMANCE REVIEW AT McDonalds (A quick summary of the discussion with Salman Amin, 2nd Assistant Manager at McDonalds,

Main Boulevard Branch.)

Organizational Structure: First of all, McDonalds is an equal opportunity employer w.r.t gender. All over the word McDonalds has the following hierarchy: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Crew (part timer) Crew (full timer) Crew trainer Trainee floor manager Floor manager Trainee managers 2nd assistant manager (shift incharge) 1st assistant manager Restaurant manager Area supervisor Director General Manager.

Below is the salary slabs of the above mentioned levels. Monthly salary package (basic): Ill refer to levels using their respective numbers which I gave above. 1-3 (4000-6000Rs) 4 and 5 (4000-16000Rs) 6 (20000+Rs) 7 (25,000-35,000Rs) 8 (40000-45000Rs) 9 (50,000-60,000Rs) 10 (100000-150000Rs) 1-3 are paid on hourly basis. When crew part-timer is hired, they are hired for 4 hours shifts and after assessing their work and performance, they are promoted for 6 hour shifts and then further positive

evaluation leads to full timer crew. The full time shift for all at McDonalds is of 9 hours (with one hour break). Part timer crew has no perks. Trainee Manager is hired on a 6 month training period, then promoted after being evaluated with the help of 2 written tests. Bonuses and Perks: Above the part-timer crew level, Perks include: 1. Group insurance 2. House rent 3. Conveyance and fuel allowance There are two bonuses every year which are linked directly to the PERFORMANCE of the staff at every level above the part timer. The bonuses can be categorized into four types: 1. Poor (if targerts not achieved, the employee is paid no bonus but just the regular salary) 2. Average/study/good (if targets just achieved with a less margin, the employee is paid half of the monthly salary as bonus) 3. Outstanding (if targets well achieved with larger margin, the employee is paid a full monthly salary) 4. Exceptional (if a record setting achievement is done, the employee is paid a 1.5 of his monthly salary) Performance Measurement and reward system: McDonalds all over the world has standardized performance measurement programs: BEAT THE PEAK HOUR: In this program, a specific hour is set during the shift and it is communicated to everyone on the floor. This hour has its own targets for every one and that targets are in the units of transactions at point of sale. If the crew has fulfilled the target, they have beaten the peak hour. MYSTERY SHOPPERS: In any time of the day and totally unannounced, mystery shoppers from McDonalds ( McDonalds disguised employees) visit a branch and make a transaction or use the services to check the performance level.

Just as a token of appreciation in these two programs, the crew members are awarded gold coins (not actual but symbolic where each coin is worth 25 Rs). Daily almost 15-20 coins are awarded in each branch. Quality Service Values (QSVs): A check of QSVs is done by the restaurant manager via 1st and 2nd assistant manager and performers are awarded a sum of 500 Rs. Customer and employee feedback regarding ethics and manners. Personal physical appearance (e.g. daily shave is a must for all male employees).

When a new product is introduced, the crew members are given a target that atleast 25 out of 100 sales should be constituting of the new product. Point of sale and visual merchandising are also the responsibilities of the 1st and 2nd assistant manager.

NOTE: Generally, a 1-10rating scale is used to evaluate employee performance.

Lay off: Under three conditions, employees are instantaneously terminated without consideration: 1. Sexual Harassment 2. Misbehavior 3. Theft If an employee stays absent without notification, it is referred to as a no show. Three no shows also result in termination.

Hiring: Hiring is done at two of the above levels: 1.Crew (part timers)

2. Trainee managers