human resource management at Mc. Donald

1. BY
Mannat
Nitish Shahi
Gurteshwar Singh
Karishma
Gurparvesh Kaur

2. HISTORY
The McDonald's restaurant concept
was introduced in San Bernardino,
California by Dick and Mac
McDonald of Manchester, New
Hampshire. It was modified and
expanded by their business partner,
Ray Kroc, of Oak Park, Illinois, who
later bought out the business
interests of the McDonald brothers
in the concept and went on to
found McDonald's Corporation.

3. McDonald's Corporation
• McDonald's is the world's leading fast-food
company by sales
• 32,000 restaurants serving burgers and fries in
about 120 countries
• .There are nearly 14,000 Golden Arches
locations in the US
• Most of its outlets are free-standing units, but
McDonald's also has many units located in
airports and retail areas.

4. Vision
“ TO BE THE WORLD’S BEST
QUICK SERVICE RESTAURANT
EXPERIENCE.”“
Mission
Don't worry about making money Love
what you are doing and always put the
customer first…And success will be
yours!”

6. Products
• In order to cater to local tastes and culinary
traditions, and often in respect of particular laws or
religious beliefs, McDonald's offers regionalized
versions of its menu among and within different
countries. As a result, products found in one country
or region may not be found in McDonald's
restaurants in other countries.
• McDonald's predominantly sells hamburgers,
various types of chicken sandwiches and products,
French fries, soft drinks, breakfast items, and
desserts. In most markets, McDonald's offers salads
and vegetarian items, wraps and other localized fare

7. Values
A) They place the customer experience at
the core of all they do
B) They are committed to their people.
C) They give back to communities.
D) They operate their business ethically.
E) They grow their business profitably.

8. Human Resource Management
• 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
• All managers therefore take on human resource
responsibilities
• Employees are the most important resources in
McDonald's, particularly in creating a competitive
edge

9. Functions of HR in McDonalds
• POLICY-MAKING
• WELFARE
• SUPPORTIVE
• BARGAINING AND NEGOTIATING
• ADMINISTRATIVE

10. HR PLANNING
• HR planning’s purpose is to determine what
HRM requirements exist for current & future
supplies & demands of workers.
• To realize the McDonald's service vision, the
organization believes in strengthening their
team and ensures to deliver the right skills
and knowledge to the right person for getting
the right job done.

11. HUMAN RESOURCE FUNCTIONS
JOB ANALYSIS
• In McDonald’s job analysis done in order to
employee new people every year
• Helps the management to have a better
understanding of the jobs
• In McDonald’s they have predetermined standards
on which employees are awarded on the basis of
their skills, knowledge and experience

12. The Job structure
restaurant
workers corporate
staff
franchise
owners

13. 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
-CUSTOMER CARE REPRESENTATIVE
-CREW MEMBER

14. OFFICE JOBS
Managerial jobs are categorized as Office Jobs in McDonalds. At
McDonalds 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
• MIDDLE ENTRY LEVEL
• HIGHER ENTRY LEVEL

15. • 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 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 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.

16. Franchise owner
The personal growth and business knowledge
you’ll develop from our extensive training and
your experience as a franchisee is invaluable.
We encourage all our franchise owners to
grow and to continually improve themselves
and their businesses. They welcome
contributions and an open exchange of ideas
between the company and our franchisees.

17. Recruitment, Selection and
Retention :
For McDonald's, people are its most
important asset. This is because customer
satisfaction begins with the attitudes and
abilities of employees and effective workers
are the best route to success.

18. Recruitment
• 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- basedstaff.
• RECRITMENT METHODS IN MCDONANLDS McDonalds follow the
two basic types of recruitment such as:
• Internal Recruitment
• External Recruitment

19. INTERNAL RECRUITMENT McDonalds uses the following two basic methods
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 McDonalds 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 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
CVs through online process and often recruit employeesfrom their
ADVERTISING Advertising is the most used method for recruitment. McDonalds
approaches the Newspaper or a magazineadds 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.

20. Selection
After the final interview the manager will rate the
applicant's responses. A successful applicant will
have demonstrated skills and behaviors that have
been identified as being key to the position.
Selection process
• Written Process
• Initial Interview
• Aptitude Tests
• Reference Checks
• Final Interview
• Relocation

21. TRAINING AND DEVELOPMENT:
• The first stage of training is at the Welcome
Meetings. These set out the company's
standards and expectations. The majority of
training is floor based, or "on-the-job" training
• The employees in McDonald’s are provided
with training to achieve high standards in the
organization.
• Training involves-Direct training, Training
abroad
• Specific Training Courses- FMC ,MDP,OCC,TCC

22. Methods Of Training
A)Orientation
B)On-Job-Training
C)Classroom Training
Levels Of Training
A)Computer-Based Training
B)Crew Member’s Training
C)Manager’s Training

23. PERFOMANCE APPRAISAL AND INCENTIVES
SYSTEM OF MCDONALDs:
Performance Appraisals-
• McDonald’s conducts performance review semi-annually.
• Some standards are made and defined according to
which the employees have to perform.
• Then after 6 months all the employees are evaluated that
whatever they come up to standards or not.
• If an employee does not perform well then feedback is
provided to them so they can improve
• There are four levels to evaluate the performance of
employees: out standing ,excellent, good, need
improvement

24. Incentives
Incentives in McDonald’s are given to
employees on the basis of performance.
Types of incentives:
1. Cash Based
• Attendance Allowance
• Annual Allowance
• Medical Allowance
• Leave Fair Assistance
2. Non Cash Based
• Crew Of the year
• Crew Of the month
• Branch of the year
• Access to gift certificates
• Free food

25. Rewards
The rewards are given on
the basis of the
performance There is arise
of 10% in salary and if
performance is also
counted then
20%increment given at
anytime of the year.

26. Benefits
McDonald’s benefit program is designed to attract,
energize, reward and retain talented people who will
produce superior business results and enhance their
leadership position. MacDonald provided health
insurance benefit to its full-time employees.
Benefit communication planning team is designed to
include a variety of people from various corporate
departments to ensure adverse representation

27. The accomplishment of the
benefit communication planning
team includes:
• Plastic insurance cards with a magnetic strip
to automatically bill for prescriptions.
• Coworkers communication programs, which
allow a group of trained employees to explain
the program to other workers

28. Awards/Achievements
• HR Excellence Awards
2009:Best Learning and
Development Strategy -
McDonald's Restaurants
• HR Excellence Award
2007:HR Initiative “ The
People Project”
• HR Excellence Award
2006:HR Director of the
Year –David Fairhust

29. Major Findings
• At McDonalds, the corporate culture and management
system are strictly imposed, detailed operating manuals
followed to the letter and an extensive field organization
checks on each store to enforce standards.
• The organizational development focused upon
generating revenues from the existing operations.
• The biggest change is the expansion in the menus based
upon the product development strategy, and market
expansion strategy,
• They give different trainings to their
employees/managers to work in more productive way,
and to achieve the goals of the organization.

30. • The domestic growth has slowed as a result of market
saturation but McDonald’s global food service business
delivered good results, and was possible only due to expansion
and positive comparable sales.
• McDonald's develop a deep connection between McDonald’s
and the local communities in which it operates
• McDonald's believes that the success of the restaurants and the
company is achieved through the people it employs.
• The company aims to recruit the best people, to retain them by
offering on going training relevant to their position and to
promote them when they are ready.