Hrm Mc

McDonalds

TABLE OF CONTENTS INTRODUCTION 01 HUMAN RESOURCE ANALYSIS 09 JOB ANALYSIS 10 PLANNING AND FORECASTING 18 RECRUITMENT 20 SELECTION 22 TRAINING 29 DEVELOPMENT 34 PERFORMANCE APPRAISAL 36 COMPENSATION 38 INCENTIVES 42 BENEFITS 44 EMPLOYEE RELATIONS 45 CONCLUSION AND RECOMMENDATIONS 50

Human Resource Management Project

McDonalds

UNIVERSITY OF CENTRAL PUNJAB KUBRA ASLAM L1S08BBAM2020 MARYM ATIQ L1S08BBAM2032 KHADIJA BUTT L1S08BBAM2024 PROJECT MCDONALDS SUBMITTED TO PROF. R. SHAKOOR 20th June 2009 Human Resource Management Project

McDonalds

A

CKNOWLEGMENT

Human Resource Management Project

McDonalds First of all we are thankful to ALMIGHTY ALLAH who gave us the strength and determination to carry out his project successfully. We would also like to express our sincere gratitude to PROF.R.SHAKOOR for his guidance, encouragement and continuance aid through the project. Last but most important we are grateful to the HR manager of McDonald who provide us with the opportunity to know about the HR management of McDonald and cooperated with us throughout the project. She gave us a lot of information which helped us a lot in the project.

INTRODUCTION McDonald’s brand is the leading global foodservice retailer with more than 30,000 local restaurants serving almost 50 million people in 120 countries each day.

FOUNDERS: It’s rich history began with its founder`s vision and their commitment to be peoples' favorite place and way to eat with inspired employees who delight each customer with unmatched quality, service, cleanliness and value every time. The business was started in 1940 by two brothers DICK and MAC MCDONALD in San Bernardino.

Human Resource Management Project

McDonalds

HISTORY: The corporation started out as a small drive-through in 1948 by two brothers, Dick and Mac McDonald. Raymond Albert Kroc, a salesman, saw a great opportunity in this market and advised Dick and Mac to expand their operation and open new restaurants. In 1961 Kroc bought out the McDonald’s. By 1967 McDonalds expanded its operations to countries outside the U.S.A. Kroc allows anyone to open a franchise, and takes 1.9 percent of each franchise are as profits. He pays 0.5 percent to the McDonald's brothers. In 1961, Kroc purchased McDonald's from the brothers for the hefty sum of 2.7 million dollars. In 1968 the Ray Krock introduced a show to attract the children, named “BOZO The Clown”. 1990 was proving to be the booming year for Macdonald’s. In this year Macdonald’s franchises expanded world wide.

LANDMARKS TRAVEL THROGH TIME WITH US ! ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢

1940: In 1940 Dick and Mac Mcdonald opened Bar- B-Que resturant 1948: In 1948 they made it a self-service drive in restaurant and added 9 more items. 1949: In 1949 mcdonalds introduced world famous french fries and Triple Thick Milkshakes. 1955: On 15th April Kroc opened the first franchise of Mcdonalds 1953: Golden Arches were designed by architect Stanely Meston in 1953 1958: In 1956 mcdonalds sold 100 million Hamburgers. 1959: Whereas in Fon Du Lac the 100th restaurant of mcdonalds was opened. 1961: In 1961 mcdonalds opened its Hamburger University. 1963: Mcdonald opened its 500th restaurant inToledoanf filet-o-fish was introduced.

Human Resource Management Project

McDonalds ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢

1966: First television commercial was launched. 1967: Mcdonalds was introduced internationally in 1967. Today mcdonald restaurants are in about 118 countries. 1968: Big mac and hot apple pie was introduced in 1968. 1969: Golden arches were updated 1975: Break-fast and first drive through was introduced. 1979 : Happy meal for kids was introduced 1980: Mcdonald celebrated its 25th anniversary 1983: Chicken mcnuggets were added 1985: DES PLAINES store meuseum was opened 1987: Fresh salads were added in the mcdonalds menu

➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢

1995: the new advertising theme “Have you had your break today” debuted. 1996: mandonalds launched its official site Mcdonalds.com 1997: chicken sandwiches were added 2001: new burger Big ‘N tasty was introduced 2003:Mcgrilled burger was introduced, premium salads were added and the First global add campaign “ I’m Lovin it” was launched. 2005: Mcdonalds clebrated its 50th anniversary 2006: Snack-wrap was introduced. 2007: Packaging of mcdonalds was updated. 2008: Global packaging was changed and mcdonlads labled that all its food stuff contain 0 grams trans fat.

Human Resource Management Project

McDonalds

MACDONALD`S IN PAKISTAN McDonald's started its operations in Pakistan in 1998 and is a leading fast food service retailer for its valued customers. Currently McDonald's Pakistan is operating in various cities of Pakistan like Lahore, Faisalabad, Karachi, Hyderabad, and Islamabad & Rawalpindi with plans to cover the customer base in various other cities of the country. McDonald's Pakistan is a part of the Lakson Group of Companies, with a regional office in Lahore and the main Head Office in Karachi. Lakson Group also owns Lakson Tobacco Co., Century Insurance Ltd., and Cyber Net etc.

VISION

STATEMENT

The McDonald’s System leverages the unique Human Resource Management Project

McDonalds

talents, strengths and assets of diversity around the globe in order to be our customers’ favorite place and way to eat.

Human Resource Management Project

McDonalds

MISSION STATEMENT McDonald's mission is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile.

Human Resource Management Project

McDonalds

PRODUCTS AND SERVICES Macdonald sells the following products in order to provide their customer with good and hygienic food:

PRODUCTS Burgers  Chicken sandwiches  French fries  Soft drinks  Desserts  Salads  Breakfast items  Milkshakes  Coffee 

SERVICES McDonalds provides basic two services such as:

Self-Service System  Drive-In through Service 

Human Resource Management Project

McDonalds

AIMS & OBJECTIVES OF MCDONALD’S’ “It’s what I eat and what I do…I’m lovin’ it”

McDonalds wants to deepen their connection with the customer by providing great service and experience “in every restaurant, every time.” The usage of different activities allows McDonald’s and the Customers to have a relation between them.

McDonald’s objectives are given as follows:

 To serve good food in a friendly and fun environment.  To be a socially responsible company.  To provide good returns to its shareholders.  To provide its customers with food of a high standard, quick service and value for money.

COMPETITORS & PERFORMANCE The five major fast food chains today competing in the market are:

   

MCDONALD’S KFC SUBWAY BURGER KING

Human Resource Management Project

McDonalds  TACO BELL

This is a performance according to a survey done from 2004 to 2008, its results showed that McDonald's dominated, followed by the intertwined duo of Kentucky Fried Chicken and Subway that were switching position frequently. Next are Burger King and finally Taco Bell. Interestingly, the growth rate in Googlepopularity seemed to decrease more and more from no. 1 to the last one: the field was more separated in the end than in the beginning As you can see from the graph above that McDonalds is ranked as the most dominant of all its competitors. The blue color represents the performance of McDonalds as compared to all of its

competitors shows that from 2004 to 2008 McDonalds captured highest of the market share of 75% being at the top.

Human Resource Management Project

McDonalds

HUMAN RESOURCE MANAGEMENT IN MCDONALDS 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 but all managers across McDonald's are given responsibilities for selecting, motivating, developing and evaluating employees so that they can have a share in the organization’s affairs. 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 The functions of HRM in McDonald’s are:  POLICY-MAKING - Establishing major policies that cover the place and importance of people

in McDonald's.  WELFARE - Concerned with looking after people at McDonald's and their needs.  SUPPORTIVE – Co-operative and helping other managers in their work.  BARGAINING AND NEGOTIATING - Acting as an intermediary between different groups and

interests.  ADMINISTRATIVE – Responsible for pay rate system and supervision implementation of

health and safety laws, etc.

Human Resource Management Project

McDonalds

JOB ANALYSIS MCDONALDS JOB ANALYSIS McDonalds has many employees who are working on different posts and are working hard according to their own capacity. McDonalds conducted job analysis in order to hire new employees at every year that sometimes on quarterly basis. This also enables management to have a better understanding of the jobs and duties being performed at every level and also helps them in training the people who are freshly recruited.

JOB ANALYSIS METHOD IN MCDONALDS In job analysis McDonalds focuses on Work Activities and Human Behaviors of an employee for a job.

JOBS IN MCDONALDS

McDonalds Pakistan has two types of job openings with their sub openings as listed under

 Restaurant Jobs  Office Jobs

Human Resource Management Project

McDonalds

RESTAURANT JOBS In the restaurant jobs, there is a clearly defined career path, from Crew Member to Crew Leader to Floor Manager to Assistant Manager to Restaurant Manager. And from there onwards the opportunities for growth and development are limitless Area Supervisors, Operations Consultant and beyond are just a few to mention from.

TRAINEE MANAGER This is an entry level managerial position at McDonald's restaurant, providing opportunity to start and excel the career with the core business functions. Trainee managers handle various areas of professional excellence where sales, people, product safety and security are the minimum areas to be mentioned.

CUSTOMER CARE REPRESENTATIVE This is an exciting career opportunity for the females, responsible to independently organize birthday events & various activities at local store level so that the challenging fun activities of the job will gear up the commitment of employees for providing the first class customer services.

CREW MEMBER Crew Members are the core team members always ready to serve the customers on the floor with a shining smile unique with the services. This job is offered either as a Delivery Rider or a Crew Member. So the fun & enthusiasm prospect apart from extensive learning will make employees a key member of the team serving our customers. There are three main areas of responsibility of a crew member:

 Customer service  Food preparation  Cleanliness and hygiene

OFFICE JOBS Managerial jobs are categorized as Office Jobs in McDonalds. At McDonald’s office jobs are an excellent match, provided an employee can exhibit the right skill set up to excel in the areas of his/her Human Resource Management Project

McDonalds expertise. Depending upon the knowledge, experience and right aptitude, there are 3 key entry points in the office jobs.

INITIAL ENTRY LEVEL This entry level is specifically for beginners to start the career in a professional work culture, these positions will provide the opportunity to develop the skills as a successful business entrepreneur.

MIDDLE ENTRY LEVEL As a middle entry level incumbent the incoming employee will perform as a liaison with team members to deliver the team objectives while ensuring the execution of assigned tasks as per defined standards and procedures.

HIGHER ENTRY LEVEL The higher entry level job incumbents are accountable for the execution of assigned tactics and strategic plan. The provision of leadership approach to work will enhance their sense of ownership and part of the winning team member.

JOB ANALYSIS METHOD IN MCDONALDS Human Resource Management Project

McDonalds MCDONALDS applies the basic methods of Job analysis by which HRM can determine job elements and the essential knowledge, skills and abilities for successful performance methods. MCDONALDS uses the following job analysis methods according to their jobs:

 Observation Method  Interview Method.  Questionnaire Method.

The CREW MEMBERS are like main workers of the McDonalds because they are the one who handle the stage work. McDonalds use direct Observation and Interviewing together Firstly, they observe the work of the crew member note the information as much as they can and then for further assistance ask the crewmembers about the detail of their work.

For CUSTOMER CARE REPRESENTATIVES McDonalds follow the similar Interview Technique where they ask the employees that what they feel when they work in this fun environment, how they manage all the work and satisfy the kids and their parents.

For the MANAGERIAL JOBS McDonalds use the Questionnaire and Interview Method. They prepare a structured Questionnaire in which they ask employees about their jobs, purpose, education required for the job, experience or other key factors. Whereas, in Interviewing they further collect the information related to job directly from employees.

Human Resource Management Project

McDonalds

JOB DESCRIPITION The job analysis is used to generate a job description, which defines the duties of each task, and other responsibilities of the position. The description covers the various task requirements, such as mental or physical activities; working conditions and job hazards.

JOB DESCRIPTION AS PER JOBS McDonalds represent its Job Description as “Category Profile” and “Individual Competencies”

OFFICE JOBS For office jobs Job Description is named as “Category Profile”

I. INTIAL ENTRY LEVEL :  Strong focus towards learning and adapting to the corporate environment  A real interest in how people drive business  Positive work attitude with the ability to lead challenging roles & responsibilities

 Exposing good confidence level for delivering responsibilities at outstanding level  Innovative approach for initiating change at different levels  Strong communication skills to act as a liaison between stakeholders and team leaders

II. MIDDEL ENTRY LEVEL:  Strong interpersonal and leadership skills.  Effective negotiation & problem solving skills  The ability to see the big picture while delivering organizational goals

RESTAURANT JOBS For restaurant jobs the Job description is written as “Individual Competencies”

1. TRANIEE MANAGER:  Effective communication skills able to work in a team environment  Proactive to exhibit true managerial capability  Career oriented with focus on continuous learning  Flexibility to adapt to a diversified work culture Human Resource Management Project

McDonalds  Customer orientation with a positive attitude towards provision of quality services

2.

CUSTOMER CARE REPRESENTITIVES:

To maintain work standards of Customer care, customer relationship To strengthen marketing at local store level. Perform with a strong focus toward customer orientation. To independently organize and execute various events at store level.  To achieve agreed targets for enhancing Local Store Marketing.    

3. CREW MEMEBERS :  Good communication skills.

 Have ability to work at all levels required for crew members  Work efficiently and in organized way.

JOB SPECIFICATION The job specification describes the person expected to fill a job. It details the knowledge (both educational and experiential), qualities, skills and abilities needed to perform the job satisfactorily. The job specification provides a standard against what to measure; how well an applicant matches a job opening and it should be used as the basis for recruiting.

JOB SPECIFICATIONS AS PER JOB

In McDonalds the Job specification is written under heading known as “Profile” and “Competency Level”

OFFICE JOBS: In office jobs it is known as “COMPENTANCY LEVEL”

INITIAL ENTRY LEVEL: Education: Graduate or Post Graduate degree holders Experience: No prior experience is required for this entry position Human Resource Management Project

McDonalds Age: 22 - 28 years maximum Gender: Male or Female

MIDDLE ENTRY LEVEL: Education: Post Graduate degree holders with relevant area of specialization Experience: 3-5 years of experience in the relevant field Age: 25 - 32 years maximum Gender: Male or Female

HIGHER ENTRY LEVEL Education: Specialized degree in the relevant field with professional certification Experience: 5 years or beyond Age: 30 - 35 years maximum Gender: Male or Female

RESTURANT JOBS: Job Specification is represented by “Profile” in McDonalds.

TRAINEE MANGER Qualification: Post Graduate Degree in any discipline Experience: Fresh candidates with no prior experience Age: 28 years maximum Gender: Male or Female

CUSTOMER CARE REPERSENTATIVE Qualification: Graduate Degree in any discipline Experience: Fresh candidates with no prior experience Human Resource Management Project

McDonalds Age: 24 years maximum Gender: Females only

CREW M EMBER Qualification: Intermediate Experience: Fresh candidates Age: 18-25 years Gender: Male or Female

Human Resource Management Project

McDonalds

PLANNING AND FORECASTING PERSONNEL NEEDS McDonalds uses the method of “TREND ANALYSIS” for forecasting its personnel needs. This is a method in which the firm studies its past employment needs over a period of years to predict future needs. McDonalds has been operating since a very long time and by now it has full information of where it stands in the minds of people. No doubt McDonalds has raised its value above mark. McDonalds forecasts its personnel needs according to what has been the trend of its sales, revenue and labor needs in the past. For this they use two ways

MANAGEMENT ESTIMATES Managers are asked to forecast their staff requirements. They will do this on the basis of past, present and likely future requirements.

WORK STUDY TECHNIQUES Work-study specialist’s works out how long various jobs take, using available machinery and equipment. Provided they know what sales are likely to be, they calculate the numbers of employees required and the hours they will need to work. McDonalds forecasts the need of staffing employees by inside and outside supply of candidates.

INSIDE SUPPLY OF CANDIDATES In this forecasting method Information is collected on employees already working within McDonald’s. For this purpose McDonalds uses Qualification Inventory system. A Qualifications Inventory of current employees gives the thorough information about current employees’ skills, education, career, performance and other interests. HR requirements of McDonald's may be met by training and developing current staff rather than recruiting externally

Human Resource Management Project

McDonalds

OUTSIDE SUPPLY OF CANDIDATES After determining the number of employees that can be obtained internally McDonalds searches for the rest from the outside. For this McDonalds information system plays a vital role. It keeps track of the economic conditions and employment rate and after that forecasts its external needs accordingly. In this way McDonalds develops a pool of talent as much as possible so that it can choose best out of it.

Human Resource Management Project

McDonalds

RECRUITMENT Recruitment is the first part of the process of filling a vacancy. It includes examination of the vacancy, the consideration of sources of suitable candidates, making contact with those candidates, attracting application from them, short listening, interviews and finally induction of the selected candidates within the budget of the department company. In McDonalds recruitment process is decentralized. Every branch of McDonalds is independent to hire the employees. Usually at McDonalds employees are hired in a form of badge. Also the transformations of employees within the franchises of McDonalds took place for recruiting the employees. A typical McDonald’s restaurant can employ about 60 people who include the both managerial and floor- based staff.

RECRITMENT METHODS IN MCDONANLDS McDonalds follow the two basic types of recruitment such as:

 Internal Recruitment  External Recruitment

INTERNAL RECRUITMENT McDonalds uses the following two basic methods for internal recruiting

 Job Positioning  Succession Planning JOB POSITIONING In Job positioning McDonalds select candidates from inside by considering their past performance. MCDONALDS publicize their open jobs on their site www.mcdonalds2.rozee.pk where their employees could apply for the job they also publicize it in their restaurants on Notice Boards. So that the working employees could be informed from the vacant position and apply.

SUCCESSION PLANNING For the executive posts McDonalds follow a succession planning technique where they recruit their managers or senior employees to executive level on the basis of their performance. Human Resource Management Project

McDonalds

EXTERNAL RECRUITMENT McDonald’s often goes for external recruitment though they mostly prefer internal recruitment or internal promotion of the employees to the higher posts. External recruitment of McDonalds involves:

 Recruiting via internet  Advertising  College Recruiting RECRUITING VIA INTERNET Now a Days Recruiting via Internet is becoming very common. McDonalds has its own site where they publicize for jobs and offer people to send their CV’s through online process and often recruit employees from their.

the

ADVERTISING Advertising is the most used method for recruitment. McDonalds approaches the Newspaper or a magazine adds mostly to invite employees for jobs.

COLLEGE RECRUITING McDonalds follow the most common method of college recruiting known as Internships because many floor base employees usually join McDonalds for internship. Here they have one advantage that they don’t have to pay them much and their workforce need is also fulfilled for a temporary period of time.

Human Resource Management Project

McDonalds

SELECTION The selection process of McDonalds involves the following factors:

   

Initial screening Testing Interviewing Background investigation

INITIAL SCREENING In initial screening McDonalds collects the application forms of candidates from their Website online and also by Mail or Fax and than they choose those applications which are according to their job requirements and call those candidates for further process.

TESTING Human Resource Management Project

McDonalds

TESTING EMPLOYEES IN MCDONALDS McDonalds take the following tests to check the abilities, knowledge and nature of work of employees.

MCDONALDS TESTING FACTORS McDonalds conduct tests to know the following factors:

 Motor& physical skills  Personality( attitude test)  Cognitive abilities (Aptitude and Intelligence test) MOTOR AND PHYSICAL McDonald’s measures the motor means motion or movement skills of its Crew Member to know about their physical abilities.

PERSONALITY In Personality tests conducted in McDonalds are taken both from Managers and Crew Employees to know their temperament stability in work, attitude or their interests.

COGNITIVE ABILITIES McDonalds take Intelligence tests from employees who come for

Managerial Jobs these tests help them to evaluate the mental skills, intelligence , problem solving and for other intellectual abilities.

TESTING PROCEDURE McDonalds always want a multi-skilled worker or employee who could work efficiently at any level. For that when they hire employees they test according to their above mentioned criteria that the employee should be little or more skilled to work in any area. In McDonalds employees are tested in two basic ways first through some ORAL OR WRITTEN TESTS they are judged and then they are allowed Human Resource Management Project

McDonalds to perform a PRACTICAL WORK, where the McDonalds managers could evaluate them more accurately.

MCDONALDS TESTING METHODS McDonalds took following tests of employees:

    

Physical fitness test Attitude test Aptitude test Case study test method On-the-Job evaluation test

PHYSICAL FITNESS TEST In motor and physical abilities McDonalds took a Physical Fitness Test for their crew members specially to know that they are physically fit, and could work fast in the hour of rush and as well they don’t have any sort of viral or infectious diseases like for the crew members who work in production lobby (food preparation area) and also to know their stress level that if there are large number of customers standing for order so in that case how could they handle the situation mentally.

ATTITUDE TEST In personality test that McDonalds take is related to Attitude of employees; in this test they measure the behavior, stress level and temperament of employees. In this test behavioral questions are given to them like, if you have a situation to deal with a customer who’s angry with you because of your irresponsibility that you have given him a burger with no cheese than What would you do in that situation? How would you behave with him? And try to cool-down him?

Through this sort of question McDonalds measures the temperament and attitude of employee.

APTITUDE TEST For measuring cognitive abilities McDonald’s took a Psychometric Evaluation (a written aptitude test) also called Aptitude Test. The test gives insights into the applicants' verbal and critical reasoning amongst other important measures. Human Resource Management Project

McDonalds

CASE STUDY In cognitive abilities the Intelligence test is most often taken from employees at managerial level. In McDonalds this test is conducted through Case Study. A problem is given to employees in a form of case study for which they have to find solution. A business or job related situations or problems are given to employees Through this testing McDonald could know about the problem solving skills of employees and predict their practical performance as well.

ON-THE-JOB EVALUATION TEST After the written tests in McDonalds employees undergo a two-day on-the-job evaluation at any of their restaurant, which provides the employee with an opportunity to work practically on the floor and show his/her skills. It also gives a chance to McDonald’s managers to observe and assess the employee’s performance.

RELIABILTY Reliability refers that if a same test is taken from employee twice or more times and if the result of test achieved is same than it means that the test that you conducted is reliable.

RELIABILITY IN MCDONALDS TEST Now McDonalds also checks the reliability of its tests by using the Retest Technique. In this method if McDonalds managers took an aptitude test and what ever the scores of test come, they take that same test from the employees again to judge the reliability, so if the result of both test match accurately or with a little bit of difference than it means that the test is reliable. Thus this is most easy and appropriate method to determine the reliability of test and McDonalds follows this technique.

Human Resource Management Project

McDonalds

VALIDITY McDonalds testing system is valid because their testing methods reflect to Content Validity. In content validity job related tasks and skills are tested and if McDonald uses the on-the-job testing.

VALIDATION THROUGH AN EXAMPLE McDonalds uses Case Study test for the managerial level of employees, now if a candidate applies for the Executive Manager post and in case study test he is given with the case that if in McDonalds an employee is working in marketing department and performing well, and K.F.C the competitor of McDonalds want to hire that employee and offer him more pay and allowances than McDonalds. So what steps should the candidate would take if as an executive manager to solve this problem because the employee is good and they don’t want to lose him. Now the candidate has to give solution with logic, here the test is being valid if the candidate answer well than it means he/she is best for this job and the test is also being valid because it is measuring the same thing (here intellectual ability and problem solving) for what it was made to measure. Well here if a candidate answers that first he will increase the pay of the employee and give more benefits to him by keeping in view his performance and secondly make a specific contract with him and bound him with the organization on the decided pay and incentives, mentioned in the contract. Because if he gives him such pay and incentive benefit he would definitely demand for more every time so by signing a contract he will be bounded for a specific period of time.

Human Resource Management Project

McDonalds

INTERVIEWNG All candidates after formal testing are called for the final interview. This is where the final and overall assessment of the candidate takes place and selection decisions are made.

MCDONLADS INTERVIEW The selection interview of McDonalds is classified it into as given classifications:

 Interview format  Interview content  Interview administration INTERVIEW FORMAT: McDonalds employ Structured or Directive Interview content; the managers first make a set of proper Questionnaires related to job and also predetermine their answers and ask those questions from applicants in a structured order. Here questionnaires are prepared according to the job requirements.

INTERVIEW CONTENT: McDonalds has a set interview content known as Situational Interview, they ask situational questions from their employees like give them a situation and ask their opinion that what would they do in that situation but the situations are job-related.

ADMINISTERING INTERVIEW: For administering the test McDonalds conducts a most common used system Panel Interview. PANEL INTERVIEW: McDonalds take panel interview. In this interview a panel or group of executives or senior employees usually HR manager and head of the particular department ask situational or other basic questions from the candidate. If an interview for a most senior or executive post ahs to be done than the General Manager (GM) of the McDonalds conduct that interview.

INTERVIEW PROCEDURE In McDonalds interviewing system apply subsequent method:  First they examine the job description, specification, duties, and requirements for a job such as skills, knowledge or abilities. Human Resource Management Project

McDonalds  After that they create situational (job-related) questions for the candidate to know their capabilities.  Finally, they appoint the interviewers to conduct and evaluate the interview

Human Resource Management Project

McDonalds

BACKGROUND INVESTIGATION In McDonald’s, reference checking is referred to as revising the ‘Job History’ which contains:  Obtaining information from previous supervisors or peers on phone about the candidate’s behavior, repute, skills, working method or other abilities.  Checking any criminal record by investigating from police, neighborhood or others.  Knowing the Previous Salary of the candidate from the former employer by formally going to him or on phone.

TRAINING AND DEVELOPMENT At McDonalds, a job is never just a job; employees know that working at McDonalds provides them with a wealth of knowledge, experience, skills and above all a true fun work Environment. McDonalds follow a highly structured training process. Employees in McDonalds are trained at all levels. They are trained to work on floor base area to back area. McDonald's employee training programs are based on the company's core principles such as: Human Resource Management Project

McDonalds    

Quality Service Cleanliness Value Abbreviated as (Q, S, C & V)

ORIENTATION As like other organization McDonalds training and development program starts from orientation. In McDonald’s employee orientation program range from 5 to 6 months and it includes such contents:  A Welcome Orientation Day is arranged for the new employees where they got familiar with

the history or background of the company, cultural values, present conditions, future goals and objectives or plans of the company. They also watch videos related to company’s information and handouts are also given to them.  Employees are formally told about what to wear their dress code or uniform  Then employees have to spend 15 to 25 days in different sub departments under one department.  The head of the department decides that what objectives a new incoming employee should carry out.  In McDonald each employee works with or under a “Training Buddy” (supervisor).

 Employees get at least 6 months of time to show their skills and knowledge.  After these 5 to 6 months orientation employees get their appointment letters as a permanent employee of McDonalds.

TRAINING METHODS IN MCDONALDS The most used training methods that McDonalds follow are given as:

   

On-The-Job Training Job Rotation Lectures Audio-visual based training

These training methods are often practiced by entry-level workers or crew members basically for the new employees

Human Resource Management Project

McDonalds

LECTURES The first stage of training is at the Welcome Meetings. These are usually arranged in a Training Centre or Room. These lectures set out the company's standards and expectations for the new employees. Where, employees are introduced with a complete description about the job, and a guideline that how to work and what are the job requirements and procedures. A verbal outline is given to the employees.

ON-THE-JOB TRAINING The majority of training is floor based, or "On-The-Job" training because people learn more and are more likely to retain information if they are able to practice as they learn. All new employees have an initial training period. Here they are shown the basics and allowed to develop their skills to a level where they are competent in each area within the restaurant. They will also attend classroom-based training sessions where they will complete workbooks for quality, service and cleanliness

JOB ROTATION McDonalds also uses the most known type of on the job training “Job Rotation”. It is done within the specific department so that the employee becomes familiar with all level of jobs.

AUDIO-VISUAL BASED TRAINING For the new trainees McDonalds also provide them with DVDs, films, video or audio tapes related to the operational or functional work of the organization.

EVALUATION OF TRAINING McDonalds evaluate its training program through On-The-Job Behavior that after the training session the behavior of employees are changed or not. They match up the performance behavior of employees before training and after training like, the behavior of a crew member is more courteous to customers? The Inventory control manager is now more practical in his work and manages the inventory more systematically?

Human Resource Management Project

McDonalds

HAMBURGER UNIVERSITY “McDonald’s Center of Training Excellence” Since its inception, training at Hamburger University has emphasized consistent restaurant operations procedures, service, quality and cleanliness. It has become the global center of excellence for McDonald’s operations, training and leadership development.

COLLEGE DEGREE  The American Council on Education

(ACE) is the nation's unifying body for higher education. They have recognized the investment McDonald’s has made in people and the company’s high-caliber training curriculum.  Hamburger University students can earn credit toward a college degree through their course work. The American Council on Education has recommended 100 percent of the restaurant manager and mid-management curriculum for college credit – a total of 46 credits.  This means that McDonald's training for Managers is now recognized as college-level course work, eligible for credits that can be transferred to colleges and universities (both private and public) and applied toward a 2 or 4-year degree.  The average restaurant manager has completed the equivalent of approximately 21 credit hours

of college-level work through their McDonald’s training, which is equal to about one semester of college.

CURICULAM  At Hamburger University, 19 full-time professors with restaurant operations expertise - from

around the world - deliver the McDonald’s training curriculum.  Our curriculum is delivered using a combination of classroom instruction, hands-on lab activities, goal-based scenarios and computer e-learning modules.  Like the UN, we have interpreters working with us, and we have the ability to teach in 28 languages including Spanish, German, French, Japanese and Mandarin Chinese.

Human Resource Management Project

McDonalds STUDENTS  Since 1961, class attendance has grown from an average of 10 students to more than 200

students each week, and more than 5,000 students a year participate in Hamburger University courses and learning activities.  Hamburger University’s professional training and operation staff design deliver and implement

the core curriculum throughout the system using a variety of learning techniques, including elements of self-study, e-learning and classroom training.  Students are trained from the time they step into the restaurant…preparing themselves for continues learning at our Regional Training Centers and Hamburger Universit 

DEVELOPMENT

Human Resource Management Project

McDonalds CAREER MANAGEMNT At McDonalds there are different management development plans. McDonalds has established a development program for managers, employees and also for the workers at lower level. It includes:  Management development plan for employees at all levels.  McDonalds provide facilities to employees in their career planning.  Transformation of employees is also carried out within the branch or in other branches.  Different training courses are also arranged for the employee’s i.e. McDonald arranges a Summer Crash Course for their employees. McDonalds arrange following methods for specifically managers and employees development:

 Job rotation  Case study  University related programs JOB ROTATION In job rotation process the managers are allowed to work in different department or sub-department at every level to learn more about their job and identify their strong and weak points. CASE STUDY In case study method McDonald give their employees an organization related problem and then the managers give complete written description about the solution of problem given to them. It is most situational and effective learning method.

UNIVERSITY RELATED PROGRAM McDonald’s has developed a complete career management program for employees in their university with their specific career paths that includes development paths for crew, restaurant managers, midmanagers and Executives.  

 The Crew Development Curriculum is developed and supported by the professionals at

Hamburger University and facilitated in the restaurant. For crew, this serves as a foundation for management and support-staff career paths.

Human Resource Management Project

McDonalds  Restaurant Managers progress their way through Shift Management and Systems Management

courses while attending one of our 22 regional training centers. Once these courses have been completed, managers attend Hamburger University where they learn the additional knowledge and skills they need to run a multi-million dollar restaurant.  The Mid-Management learning path at Hamburger University is for business consultants and

department heads. It builds on their leadership and consulting skills, teaching individuals how to effectively operate a business and how to coach and consult with others to run great restaurants.  The Executive Development learning path helps reinforce ongoing business and leadership skills

for top management. The courses available at Hamburger University build upon the leadership competencies needed to support employees, Owner/operators and sales growth.

Human Resource Management Project

McDonalds

PERFORMANCE APPRAISEL Performance appraisal compares each employee’s actual performance with his or her performance standard. Managers use job analysis to determine the job specific activities and performance standards. “Performance appraisal helps in estimating employee’s current performance, setting work standards and then providing feedback to employees with the aim of eliminating performance deficiencies”.

PARAMETERS OF PERFORMANCE APPRAISAL The performance appraisal is based on the following some of the parameters:

     

Ethics General Knowledge/ IQ, Confidence Motivation Team Work Communication Skill

At McDonalds every employee is on a race to give the best performance through their knowledge, abilities and skills. An appraisal session is also arranged for the employees. An appraisal interview in McDonalds is taken by Head of the Department only and the progress report of the employee is also in the hands of the Head of the Department. In McDonalds the yearly appraisals of employees are done in June to July.

PERFORMANCE APPRAISEL METHODIN MCDONALDS McDonalds uses the Graphic Rating Scale Method for evaluating the performance appraisal of employees.

GRAPHIC RATING SCALE METHOD Human Resource Management Project

McDonalds Through the Graphic Rating Scale the head of the department rate the person according to the performance of its work, skill, knowledge, experience and after the assessment according to the rating scale, rate the employee as appraised. Graphic rating scale method involves the following traits:

     

Communication Personal effectiveness/efficiency Teamwork Productivity Quality of work Reliability

In McDonalds employees are rated according to these or more traits. Rated on his/her performance that the employee is good in communication skills or not, the employee could work independently on its own. The employee is cooperative with other his/her co-workers. The productivity of work that weather he/she could work more and proper in less time and finally is the employee is reliable means he/she will work on time appropriately. Well the graphic rating scale method which McDonalds use is a best and simplest method for them because employees from floor base to managerial level are rated easily. The scale lists the suitable traits or standards for the employees according to their work or job and they are rated fairly as according to their performance.

COMPENSATION AND BENEFITS COMPENSATION PROGRAMS COMPENSATION METHOD McDonald uses Broad banding trend of compensation, in this trend wide range of jobs and salary levels are represented by Bands. So the employee, whose job falls on one of these grades, gives the pay range listed on that grade and determines his or her salary. McDonalds has this system of compensation because, broad banding allows for flexibility in terms of pay, growth and movement.

WHY THEY USING BROADBANDING METHOD Human Resource Management Project

McDonalds McDonalds is using broad banding method for compensation because it is the most used method by companies and it is relatively easy to handle. As there are so many jobs and each job has its own description and value so by making bands of similar jobs and assigning them the appropriate salaries will make easy for McDonalds to set the pays of employees.

COMPETENCY-BASED PAY McDonalds don’t apply the Competency-Based Pay Method because in this method pays are established as according to the performance of employee such as: If a crew member is working according to the level of manager his performance is equivalent to manger so their pays will be same. But McDonalds pay their employees according to the job or level. Mangers own different higher pays as compared to worker or Crew members.

ESTABLISHMENT OF PAY RATES Why pay rates are established???? It is very difficult to set pay for any organization without conducting pay rates. Pay rates are necessary to define because it is better for both employer and employee. FOR EMPLOYER: He sets salaries according to the market or could be more from market and employer get knowledge about market. FOR EMPLOYEE: Similar nature of jobs categorized in groups and employee feel secure that he is getting salary according to market rate or could be more.

PAY RATES IN MCDONALDS McDonalds follow following steps in establishing of pay rates

A.MCDONALDS SALARY SURVEY Human Resource Management Project

McDonalds McDonalds conduct salary survey, that what other employers are paying for the same nature of job to there employees. McDonalds pays more to their employees as compare to market. So, the salary survey is necessary for establishing pay rates. McDonalds has also given its salary ranges on different jobs in their site. LOWER LEVEL JOBS: For the lower level jobs like Crew Members or clerical workers McDonalds conduct a salary survey through Telephone or Internet.

HIGHER LEVEL JOBS: Whereas, for the higher level jobs such as at managerial level a formal survey is conducted by McDonalds. In McDonalds the employer collects the information from other employers in a form of questioners, in which he asks about the overtime policies or bonuses, the starting salaries or other increments.

Human Resource Management Project

McDonalds B.JOB EVALUATION: The second step in establishing pay rates is evaluating jobs or JOB EVALUATION In Job Evaluation jobs are evaluated or compared with each other on the basis of qualifications, skills, responsibilities and working conditions. McDonalds follows the Job Classification method of job Evaluation because they have categorized their jobs into two main classes known as:

 Part Time Employees  Full Time Employees McDonalds evaluate its job on the basis of working hours of their employees more clearly for the crew members they use the part time job evaluation and for managerial level staff they use full time evaluation PART TIME EMPLOYEES: Well for part time employees MacDonald’s pay them on the basis of their working hours means hourly wages. FULL TIME EMPLOYEES: The Full Time Working Employees are given salary on monthly basis they are known as permanent employees.

C.GROUP SIMILAR JOBS INTO PAY GRADES After job evaluation, McDonalds grouped similar nature of jobs into pay grades for establishing pay rates. As McDonalds uses the job classification technique so their jobs are already in a grouped form and they establish pay grades according to part time and full time jobs.

D.PRICING OF PAY GRADES This step assigns pay rates to pay grades. For assigning pay rates to any level of job, McDonalds uses Wage Curve which shows the relationship between value of the job and wage price for the job. McDonalds through wage curve assign pay rates to part time and full time jobs according to the requirement of job. More specifically according to the job nature of employee such as for part time crew member the pay rate will be different from full time depending on their work.

Human Resource Management Project

McDonalds

MCDONALDS MANAGERIAL JOBS McDonalds price their managerial jobs on the basis of their performance of work, skill, knowledge and experience. It is different for all level of managerial job.

McDonalds price its managerial jobs as:

 Base pay  Incentive pay

BASE PAY: Employees' base pay is the most significant portion of their compensation, McDonald's maintains the competitiveness of base pay through an annual review of both external market data and internal peer data.

INCENTIVE PAY: Incentive pay provides their employees with the opportunity to earn competitive total compensation when performance meets and exceeds goals. The Target Incentive Plan links employee performance with the performance of the business they support. TIP pays a Bonus to top of employees in their base salaries.

INCENTIVES PROGRAMS Human Resource Management Project

McDonalds ORGANIZATION – WIDE McDonalds has developed under given People Philosophy for compensating and motivating their employees RESPECT AND RECOGNITION Respect is one of the major factors in any organization all over the world. Managers and all employees of McDonalds treat with respect to their seniors or subordinators and value them. VALUES AND LEADERSHIP BEHAVIORS All of employees act in the best interest of the Company and tries to achieve their goal in a better way. They communicate openly, listening for understanding and valuing diverse opinions. They accept personal accountability. They coach and learn. COMPETITIVE PAY AND BENEFITS Pay is the main factor of job, mostly pay is dependant on persons skills, experience etc .In McDonalds Pay is at or above local market rates and according to the vacancy offered by the organization. LEARNING, DEVELOPMENT AND PERSONAL GROWTH: Learning is the basic task of employee other than his pay, that what he or she learnt from his job, it’s known as his or her experience. Employees receive work experience that teaches skills and values that last a lifetime. Employees are provided the tools they need to develop personally and professionally. RESOURCES TO GET THE JOB DONE: It is ensured that a comfortable place to work with access to the materials, equipment and information has been provided to do the job. To the employees at all levels such basic benefits and compensation are given:

 Health and Protection  Work or Life Balance  Pay and Rewards

INCENTIVES FOR SENIOR MANAGEMNT

McDonalds is providing different incentives to their senior managers such as: LONG TERM INCENTIVES: Human Resource Management Project

McDonalds Long term incentives are granted to eligible employees to both reward and retain key employees who have shown sustained performance and can impact long-term value creation at McDonald's MEDICAL AND HOSPITAL FACILITIES: It includes the some percent of compensation in the fee of hospital. FREE FURNISHING ON HAVING NEW HOME (MANAGERIAL LEVEL): The employee’s at most executive posts are given new and fully furnished home. PROVIDENT FUND (ESOP): Provident fund is given to employees as according to the companies policy mostly organizations cut 5% from the salary of the employee and he/she could take that provident fund at any time they demand. CHOICE TO GET NEW CAR AFTER FIVE YEARS (COMPANY CAR PROGRAM): It is an incentive that McDonalds give to its senior employees that they could own car for their office and personal use and change the car after five years given by the company. UMRAH PACKAGES: Special Umrah packages are given to employees at senior level. RECOGNITION PROGRAMS: McDonalds recognition programs are designed to reward and recognize strong performers, these include:  Presidents' Award (given to the top 1% of individual performers worldwide)  Circle of Excellence Award (given to top teams worldwide to recognize their contributions for advancing our vision).

BENEFIT PROGRAMS HEALTH AND PROTECTION: Health and protection includes the following benefits:  Medical Aid Human Resource Management Project

McDonalds  Pension or Provident Fund  Disability Cover  Funeral Cover  Accidental death & dismemberment (AD&D) WORK OR LIFE BALANCE: McDonald's believe in work and life balance and they offer the following programs to assist their employees: • • • • •

Annual Leave Leave of Absence Educational Assistance Employee Discount Card Staff Appreciation Days

PAY AND REWARDS: McDonalds pay and reward method is fair which is as given: •

Highly competitive salary packages • Performance based bonus • Employee of the Month program • Annual employee recognition awards • Opportunity for local and/or international training at all levels

STEPS TAKEN BY MCDONALDS TO MOTIVATE ITS EMPLOYEES McDonalds should follow these steps to keep their morale and motivation level high:  Offer the insurance for employees  Increase the wage rate  Give incentives to their employees on different events  Arrange parties just for McDonalds staff once in a month

EMPLOYEERELATIONS

In any organization employee relation plays a key role. If the employees of an organization are satisfied it means that the organization could touch to the heights of success because a satisfied employee will work more passionately.

COLLECTIVE BARGAININIG Collective bargaining is a process in which employee’s union and the management negotiates with each other and signs an agreement on the labor issues such as pays, benefits, working or other facilities.

COLLECTIVE BARGAINING IN MCDONALDS UNION Human Resource Management Project

McDonalds There is no such collective bargaining system is McDonalds because McDonalds don’t have a predefined labor or crew unions. McDonald’s culture supports anti-union concept. When a crew member or any lower level employee joins the McDonalds he/she have no basic knowledge of Unions, but after working for a period of time, when they get familiar with the culture of McDonalds they become more firm at anti-union concept.

The former CEO and Chairman of McDonalds Peter Ritchie says “Unions stifle Creativity”; “there is no place for unions at McDonalds”; “ I have spent my entire life opposing unions”; “I have had some horrible and stressful fights with union leaders, it’s often very difficult keeping them out” McDonalds has a well systematic pay rates, benefits and employee needs program so when a new employee comes to join McDonalds they define every single policy, values, culture and employee benefits or compensation programs. So he employee working in McDonalds is well-aware of their procedure of employee relations. More precisely, when McDonalds hire an employee they make every thing clear and if the employee agrees to work in such environment than they allow him to work.

PAY- RELATED BARAGAINING IN MCDONALDS Unions play an important role in pay-related issues. Most of the time employees are not satisfied with their pays. So they create problems, although many different agreements are signed between employees and management. But as in McDonald’s there are no such unions so the problem related to pay to employees would be that if a crew member do wage bargaining with employer individually In McDonalds most of the employees don’t favor for this method because they typically believe that such strategies would be:  Bad for morale  Difficult to administer  More time consuming  Encourage discrimination or favoritism Although on other hand some employees believe that it should be done on the basis of: Human Resource Management Project

McDonalds On-the-job performance or workplace effort. Like if an employee performs well his/her pay should be increased through individual bargaining, that the employee himself should demand for more pay. But the management or managers of McDonalds believe that pay is not a subject on which employees negotiate individually, because according to them they have no discretion to enter into such arrangements that involve altering individual crew or small group wages on the grounds of performance. In McDonalds when employee is recruited they specially discuss the terms and conditions about the pays and negotiation issues on pays.

MCDONALDS EMPLOYEE RELATIONS McDonalds has a comprehensible strategy of occupational health, safety and security of employees.

HEALTH SAFETY IN MCDONALDS McDonalds has a safe environment regarding to health, there are no such serious health safety threats in McDonalds but they have developed a systematic health and safety program for those employees specially who work in production lobby. Such factors could be a health and safety problem for McDonald’s employees:

• • • •

High temperature Hygiene Smoking Infectious disease

MCDONALDS HEALTH SAFETY SYSTEM McDonalds keeping in view the above factors take the following steps ahead to prevent their employees from any health hazard: VENTILATION SYSTEM: Proper ventilation systems such as exhausts are placed so that the high temperatures don’t cause any health problem to employees who work in production lobby (cooking area). Human Resource Management Project

McDonalds INSPECTION: For the hygiene of office and cooking place per month a inspector from food department visits to observe the cleanliness system, this is better for employees themselves and the customers as well. NO SMOKING RULE: In the office a smoking rule is obeyed for the health protection of employees and restaurant environment. INFECTIOUS DISEASES: A medical check up of employees is conducted to know that any employee doesn’t have any viral disease and if any employee becomes serious ill he/she is granted a leave so that no other employee could suffer from same problem.When employees are hired in theitraining session they are informed with a complete description and safety measures related to their health.

Human Resource Management Project

McDonalds

SAFETY AND SECURITY IN MCDONALDS For safety and security of employees two areas are considered such as, Inner area of the office and outside threats.  Inside office means that the safety and security of office, like McDonalds has a production lobby

inside their restaurant where they cook or prepare food so the danger of Fire Explosion is always there for them and as well like all other offices the threat of Electric Short-Circuit. Also any sort of Criminal Act from employees.  Outside area signifies that if in McDonalds any one enters and makes them HOSTAGE or

Commits Bomb Blast, is a sign of big threat to their employees and restaurant as well.

MCDONALDS SAFETY AND SECURITY SYSTEM McDonalds according to the above mentioned security risks use two basic facilities of security given as:

• Natural Security • Mechanical Security

NATURAL SECURITY: Natural security means securing your office architectural area. McDonalds has Security Guards and Check Post in parking lot.

SECURITY GUARDS: They have security guards in their Parking Area and at the Entrance Door as well.

CHECK POST: Also a check post is placed at the Entrance of parking lot.

Human Resource Management Project

McDonalds

MECHANICAL SECURITY: In mechanical security system technological systems or machines are used to enhance the security system. McDonalds has placed a scanner at their entrance door, CCTV cameras are also fixed in and outer area of the restaurant, fire extinguishers and stabilizers’ for short circuit.

SCANNER: Scanners are placed at Entrance door for every customer or person to detect any metallic thing like weapons etc.

CCTV CAMERAS: CCTV cameras help McDonalds to monitor every movement of customers or any person who is in the restaurant.

FIRE EXTINGUISHERS: For the danger of fire explosion Fire Extinguishers and other Aid Equipments are placed in the office area and production lobby of McDonalds. Fire alarms are also placed.

STABILIZERS: In the case of electric short-circuit are used to retain the voltage of electricity and any mishap doesn’t take place.

Human Resource Management Project

McDonalds

CONCLUSION AND RECOMMENDATIONS HR POLICIES AND PRACTICES OF MCDONLADS The HR polices and practices involve certain core tasks to fill such as: Recruitment, Selection, Evaluation, Performance, Compensation and certain other factors. The HR department of McDonald’s fulfills all the requirements of these tasks or functions in a true sense of the meaning. McDonald’s strongly believes in the well being of people and its workforce and that is one reason why it is the leader in the fast food industry and it proves that the strategies the company has chosen are right and efficient for their business.

EVALUATION OF HR POLICIES AND PRACTICES OF MCDONALDS The policies and practices of McDonalds which we discussed above in the report are according to our literature all their strategies of HR meet up with are literature of course because during interview we asked all their HR practices according or comparing to our literature.

SUGGESTIONS After critically evaluating the HR Functions of McDonald’s we recommend the following suggestions according to the each section of HR: JOB ANALYSIS: For job analysis we recommend that McDonalds should also include Performance Standards and Human Requirements which would help them more in making job description and specification.

Human Resource Management Project

McDonalds JOB DESCRIPTION AND SPECIFICATION: Well their job description and specification is not clear they have intermingled it. In Job Description they have written about the skills required in an employee not about the duties he/she would have to perform. Similarly in Job Specification they have just written general information not about the skills and personality traits.

PLANNING AND FORECASTING: In planning and forecasting McDonalds is using trend analysis method for personnel needs but according to our opinion Computerized Forecast should be used because McDonalds is a large organization and they should estimate their need of employees through computerized system it would be easier for them.

TESTING: All over McDonalds has a good formal testing system but in our view for crew members

specially who deal with customer care area a Communication Skill Testshould be taken which includes testing of accent, language, talking way and facial expression of employees.

INTERVIEW: McDonalds should also ask Behavioral Questions from the candidates so by knowing their past experience they could judge their attitude and mental abilities more accurately.

COMPENSATION & BENEFITS: For the employees at lower level like crew members, a proper Medical Check-up after every month should be provided to them and their pays should be increased comparing to the economic conditions of country. For higher level employees a Life-insurance policy should be made.

Human Resource Management Project

McDonalds

Human Resource Management Project