Mcdonald Hr Project

Human Resource Management

HUMAN RESOURCE MANAGEMENT

MCDONALD,S CORPORATION

Institute of Administrative SCIENCES

feburary 2, 08

Statement of Commitment We as students of I.A.S. clarifies that all the information has been collected by interviewing the Human Resource Manager of McDonald’s and there is no doubt about its documentation.

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Human Resource Management

SUBMITTED TO: MISS Saima Asad

SUBMITTED BY: Muhammd Farooq (MPA-29-M). RABIA Imtiaz (MPA-05-M). Muazzam Ali (MPA-49-M). Rafia Khalid (MHRM--M).

CLASS: Masters 2nd Semester (MORNING)

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ACKNOWLEDGEMENT “In the name of Almighty Allah, the most beneficent and merciful to the mankind.”

This project would not be possible without the encouragement and guidance of number of people. We feel highly obliged and want to express our deepest gratitude to our respected teacher Miss Saima Asad for her advice, help and guidance throughout this semester. We would like to express our deepest gratitude to our parents and friends for their inspirations, love and constant support.

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EXECUTIVE SUMMARY This project is about Mc Donald’s 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 employee’s 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.

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History and introduction

McDonald's has come a long way since Ray Kroc

laid

down the foundation of the Company in 1954. Story goes that Ray Kroc mortgaged his home and invested his entire life savings to become the

of

exclusive distributor of a five-spindled milk shake maker called the

McDonald’s:

Multimixer. Hearing about the McDonald's hamburger stand in California running eight Multimixers at a time, he packed up his car and headed West. Ray Kroc pitched the idea of opening up several restaurants to the brothers Dick and Mac McDonald (hence the name), convinced that he could sell eight of his Multimixers to each and every one.

McDonald's today 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. McDonald’s serves less than one percent of the world’s population. McDonald’s outstanding brand recognition, experienced management, high quality food, advanced operational systems and unique global infrastructure ensure a position that enables them to capitalize on global opportunities.

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Human Resource Management

McDonald's Pakistan:

McDonald’s is part of the Lakson group of companies,

a

leading business in Pakistan. McDonald’s 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. 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 McDonald’s 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. McDonald’s 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.

World Wide Strategies:

1. Be the best employer for people in each community around the world. 2. Deliver optional excellence to customers in each restaurant. 3. Achieve enduring profitable growth by expanding the brand and leveraging the strengths of McDonald’s system through innovation and technology.

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Mission

“Don't worry about making money Love what you are doing and always put the customer first…And success will be yours!”

Statement: VISION:

“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 world. 2. Deliver optional excellence to the customers in each of the

restaurants.

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

Objective:

“To satisfy the internal customers because they are the window to the external customers.”

Structure:

McDonald's are structured along functional lines. Their Chief Executive oversees five major areas of activity: 1. Operations (equipment and franchising) 2. Development (property and construction) 3. Finance (supply chain and new product development) 4. Marketing (sales marketing) 5. Human Resources (customer services, personnel, hygiene and safety).

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McDonald’s Structure:

The structural hierarchy of McDonalds Pakistan is as follows

• Trainee Business Manager: The trainee business manager should have the right skills and qualities, in order to operate Mc Donald’s. • 2nd Assistant: At this level the second assistant really begins to develop his/her management skills and learns what goes into running a shift. • 1st Assistant: At this level the first assistant brings together operations and management skills and gets grip with finance, human resource and training.

• Restaurant Manager: The restaurant manager has all responsibility for people, profitability and every other aspect of running the restraint.

• Area Supervisor: A team of restaurant managers looks to the area supervisor for advice and guidance for everything from the recruitment of staff to local marketing initiatives.

• Operations consultant: As operations consultant is an experienced manager, he will be involved in the long term planning for the restaurants.

• Operations manager: Acting as a business consultant, the input of an operations manager plays a major part in the performance of as many as 10 restaurants.

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HRM in McDonald’s:

McDonald’s 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 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.

Equal Employment Opportunity Laws

McDonalds is a responsible company, who believes on EEO laws and is an equal opportunity employer committed to a diverse work force. McDonalds might be a global business but it is made up of individuals, everyone of whom brings their own unique skills and qualities to the team. There is no limit to how far you can progress here without gender discrimination.

Job Analysis:

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.

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Job Descriptio n

Position : Assistant Manager - Marketing Vacancy Location: Mumbai Candidate Profile: MBA / PGDBA with specialization in Marketing must be willing to travel. Must have 2-4 years of experience in the areas mentioned below preferably from the retail industry. Job description: Identify priority restaurants, develop sales building plans and evaluate results for priority restaurants, map business opportunities and challenges for restaurant, event marketing, assist with the development of mini-market marketing plans, provide input on marketing needs from customer viewpoint, monitors the proper execution and impact of all marketing activities.

Job Analysis in

As job analysis is the process to understand the responsibilities of the job and in McDonald’s it is done in these different ways:

McDo Questionnaire nald’s :

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

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The hiring process has two components: •

Recruitment.

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Levels of Hiring:

At McDonald, Hiring is done at two levels: •

Trainee Managers.

•

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. 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 job’s availability to the market and attracts qualified candidates to apply.

Recruitment:

There are two types of recruitment. McDonald’s corporation fills its positions by. • •

Internal sources External sources

Types of recruitment:

Internal sources Filling open positions with current employees are often best source of candidates. At Macdonald’s 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

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External sources Eternal sources used by McDonald’s are Advertisement in Newspapers 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 can’t be missed by anyone. Internships Sometimes students get jobs while doing internship in McDonald.

Selection:

At McDonald’s, people are the most important factor. They seek only those people, who can think, feel, express themselves, learn, teach and hence grow. Their growth is the company’s growth

Fresh People McDonald’s provides thorough In-house training to fresh people relatively inexperience people. Hiring people having no previous work experience also helps them greatly in adjusting to the distinct culture of the organization.

Justified Selection The selection is entirely based on merit, which conform the selection criteria without any bias towards gender, religion, race, color, nationality, age.

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Selection

After advertising for the job in the papers or in any other way when

Process:

applications are received, these steps are followed:

Screening of Applicants After building a pool of candidate’s 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.

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.

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Relocation 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 McDonald’s is maintained.

Training in McDonald’s:

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.

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Methods of

The different methods of Training used by McDonald’s are :

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

• 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.

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• 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 McDonald’s:

• Crew Member’s 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.

• Manager’s 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.

Specific Training Courses

•

Floor Management Course (FMC):

The FMC is geared towards improving the trainee's ability to deliver Q,S,C & V as a Floor Manager. •

Management Development Program (MDP):

The MDP series is designed to help you become the most effective manager that you can be.

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•

Operations Consultant Course (OCC)

•

Training Consultant Course (TCC) 17

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Performanc

It is a process by which the performance of an employee is evaluated.

e

McDonald’s conducts performance review semi-annually. Some

Appraisals:

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- jobevaluation) 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 McDonald’s includes PA forms for every particular job which involves: -

International McDonald‘s standards. Assessing the employees’ actual performance relative to these standards.

Providing feedback to the employees.

Levels of

There are four levels to evaluate the performance of employees:

Performanc e Appraisals:

•

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.

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Incentives

Performance-based pay approach that is designed to increase output, based on the performance of individuals or groups. Incentives in McDonald’s are given to employees on basis of performance.

Types of Incentives 1. Cash Based 2. Non Cash Based Cash Based Incentives •

Attendance Allowance

•

Annual Allowance

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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 McDonald’s 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

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Crew of the Year

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Crew of the Month

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Branch of the Year

•

Access to gift certificates

•

Merchandise

•

Free food

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Benefits

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

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Conclusion:

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,

•

Recommenda tions:

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 need 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.

•

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.

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QUESTIONNAIRE • • • • • • • • • • • • • • • • • • • • • • • • • • •

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What are the specific strategies used by the organization? What is the role of HR department in McDonald’s Pakistan? Is there any provision of specific laws in McDonald’s? How is job analysis done in organization? From where you recruit your employees? What are the internal sources of recruitment here? What is the specific selection process in McDonald’s? Do the candidates have any significant idea of the selection process? Do you recruit through any agency? On which media you generally advertise? Do you recruit on internet? Do you follow merit policy or some reference? Do you recruit according to seasons? Do you have any orientation program? When the training need is felt here? What is the different training methods adopted in McDonald’s? Are there any specific training courses also offered? How the performance of an employee is evaluated? What is the appraisal levels adopted? Is the company satisfied with the work of employees? How many workers working in your organizations? Do you give any break to your employees during working time? Is smoking prohibited or allowed in your organization? Have you equal opportunity to manager and clerical staff? What is your policy for employees vacations and leaves? Do you have any morality program in your organization? Is there reward for the person, who do something for organization?

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