Mc Donald

Mc DonaldSubmitted by pawanlpu on March 24, 2011

Category: Business and Economics Words: 6974 | Pages: 28 Views: 13 Report this Essay

CONTENTS

INTRODUCTION

HUMAN RESOURCE ANALYSIS

JOB ANALYSIS

PLANNING AND FORECASTING

RECRUITMENT

SELECTION

TRAINING

DEVELOPMENT

PERFORMANCE APPRAISAL

COMPENSATION

INCENTIVES

BENEFITS

EMPLOYEE RELATIONS

CONCLUSION AND SUGGESTIONS

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 in1940 by two brothersD IC K and MAC MCDONALD

in San

Bernardino.

VISION STATEMENT

The McDonald’s System leverages the unique talents, strengths and assets of diversity around

the globe in

order to be our customers’ favorite place and way to eat.

M ISSION 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.

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 Servi

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.

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

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

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

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 directO bs er vation andIn ter viewin g 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 theQues tionnair e 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.

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

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“Pr ofile” 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

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 LEVE L

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 McDonalds

Age: 24 years maximum

Gender: Females only

CREW M EMBER

Qualification: Intermediate

Experience: Fresh candidates

Age: 18-25 years

Gender: Male or Female

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

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.

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 isdecen tr aliz ed. 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 ,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.

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 the jobs and offer people to send their CV’s through online process and often

recruit employees

from their.

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 asInter ns hips

because many floor

base employees usually join McDonalds for internship. Here they have one advantage that

theydon’t have to

pay them much and their workforce need is also fulfilled for a temporary period of time.

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 theirW ebs

ite 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

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)

.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 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

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 FORMA T :

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.PA N EL

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.

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

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:

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” (s u p er v is o r ) .

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

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

he 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?

DEVELOPMENT CAREER MANAGEMNT

At McDonalds there are different management development plans. McDonalds has

established adevelopment

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 ou

t 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

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.

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

anddepartment

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.

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 METHOD

McDonalds uses the Graphic Rating Scale Method for evaluating the performance appraisal

of employees.

GRAPHIC RATING SCALE METHOD

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

thembecause 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 PROGRAMS

COMPENSATION METHOD

McDonald uses Broad banding trend of compensation, in this trend wide range of jobs and

salary levelsare

represented byBands. 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

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

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 throughTeleph on e orI n ter n et.

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.

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. GRO UP 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 usesW age

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 wor

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 aBonu s to top of employees in their base

salaries.

INCENTIVES PROGRAMS

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:

Long term incentives are granted to eligible employees to both reward and retain key

employees whohave

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

mostexecutive 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

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

EMPLOYEE RELATIONS

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 eachother

and signs an agreement on the labor issues such as pays, benefits, working or other facilities.

COLLECTIVE BARGAINING IN MCDONALDS UNION

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 stifleCreativity”; “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:

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

(cookingarea).

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.

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 M

cDonalds 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

HOSTAGEor 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 theEntr ance of parking lot.

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 atEntr ance

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.

CONCLUSION

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 includePer for mance

Standardsand Human Requirements which would help them more in making job description

and

specification.

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

properM edical

Check-up after every month should be provided to them and theirpays should be increased

comparing to the

economic conditions of country. For higher level employees aLife- ins ur ancepolicy should

be made

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