HRM - Human Resource Management:- HISTORY Vision Mission Values HR PLANNING JOB ANALYSIS • Recruitment, Selection and Retention :- TRAINING AND DEVELOPMENT: Orientation • PERFOMANCE APPRAISAL AND INCENTIVES SYSTEM OF MCDONALDs:- Workplace Safety Separation:- McD’s Key to Success Recruitment Strategies Strategic Learning & Development

1. About McDonald’s
• McDonald’s originated in California, USA, 1954
• Most successfulfastfood chain in the world
• Spanning over 121 countries worldwide
• Operating more than 38,000 restaurants
• Serving around 68 million customers daily
• Creating an opportunity of employment to about 1.7 million people.
HISTORY
The McDonald's restaurantconcept 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 boughtout the business interests of the
McDonald brothers in the concept and went on to found McDonald's
Corporation.
Vision
“ TO BE THE WORLD’S BEST
QUICK SERVICERESTAURANT
EXPERIENCE.”
Mission
“Don't worry aboutmaking money Love what you are doing and always
put the customer first…And success willbe yours!”
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.

2. E) They grow their business profitably.
Core Values
Fresh People:
McDonald’s provides thorough In-housetraining 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.
JustifiedSelection:
The selection is entirely based on merit which conforms the selection
criteria without any bias towards gender, religion, race, color,
nationality, age.
HR PLANNING
• HR planning’s purposeis to determine what HRM requirements exist for
current& future supplies & demands of workers.
• To realize the McDonald's servicevision, the organization believes in
strengthening their team and ensures to deliver the right skills and
knowledgeto the right person for getting the right job done.
JOB ANALYSIS
• In McDonald’s job analysis donein order to employee new people every
year
• Helps the management to havea better understanding of the jobs
• In McDonald’s they have predetermined standards on which employees
are awarded on the basis of their skills, knowledgeand experience

3. RESTAURANTJOBS
In the restaurantjobs, there is a clearly defined career path, from Crew
Member to Crew Leader to Floor Manager to AssistantManager to Restaurant
Manager. And fromthere onwards the opportunities for growth and
development are limitless. Area Supervisors, OperationsConsultant and
beyond are justa few to mention from.
-TRAINEEMANAGER
-CUSTOMER CAREREPRESENTATIVE
-CREWMEMBER
OFFICEJOBS
Managerial jobs are categorized as OfficeJobs 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

4. knowledge, experience and right aptitude, there are 3 key entry points in the
office jobs.
• INITIAL ENTRYLEVEL
• MIDDLEENTRY LEVEL
• HIGHERENTRY LEVEL
• INITIAL ENTRY LEVEL:- This entry level is specifically for beginners to
startthe career in a professionalwork culture, these positions will
providethe opportunity to develop the skills as a successfulbusiness
entrepreneur.
• MIDDLEENTRY LEVEL :-As a middle entry level incoming employee will
performas 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 senseof ownership and
part of the winning team member.
• Franchise owner :-
The personalgrowth and business knowledgeyou’lldevelop from our
extensive training and your experience as a franchiseeis invaluable. We
encourageall our franchiseowners to grow and to continually improve
themselves and their businesses. They welcomecontributions and an
open exchange of ideas between the company and our franchisees
• 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 arethe best route to success.
• Recruitment:-

5. • RECRUITMENT:- Recruitment is the firstpart of the process of filling a
vacancy. Itincludes examination of the vacancy, the consideration of
sources of suitable candidates, making contact with those candidates,
attracting application from them, shortlistening, interviews and finally
induction of the selected candidates within the budget of the
department company. In McDonalds recruitmentprocess 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 restaurantcan 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:
• InternalRecruitment
• External Recruitment
• INTERNAL RECRUITMENT McDonalds uses the following two basic
methods
• JOB POSITIONING In Job positioning McDonalds select candidates from
inside by considering their pastperformance. MCDONALDS publicize
their open jobs on their site ,wheretheir 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

6. • INTERNETNow a Days Recruiting via Internetis becoming very
common. McDonalds has its own site wherethey publicize for the jobs
and offer people to send their CVs through online process and often
recruit employees fromtheir
• ADVERTISING :- Advertising is the mostused 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 becausemany floor base
employeesusually join McDonaldsfor internship. Here they have one
advantagethat they don’t haveto pay them much and their workforce
need is also fulfilled for a temporary period of time.
• Selection
After the final interview the manager will rate the applicant's
responses. A successfulapplicantwill have demonstrated skills and
behaviors that have been identified as being key to the position.
Selection process
• 1. Screening of Applicants
After building a pool of candidate’s applications, shortlisting of selective
applications is done by the HR manager.
• 2. W-I-S
This is the 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 HRD department designs and conducts the tests as and when hiring
needs arises.
• 3. Initial Interview
The ONE to ONEinterviews conducted by Restaurant Manager.

7. • 4. ReferenceChecks
They look at the references that have been provided by the candidate,
they check if the references are valid or not.
• 5. Final Interview
Candidates who have passed their TEST are called for the final interview.
Interview is done by a panelof five or six interviewers.
TRAINING AND DEVELOPMENT:
MissionStatement:
"Learn whileyou earn"
• 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
Methods Of Training
1) Onthe Job Training:
Every day, around the world, restaurantmembers receive on-the-job
training and coaching in skills and procedures essentialto their work.
2) ClassroomTraining:
Classroomcourses, developed and led by training experts, prepare
outstanding restaurantemployees for advancement.

8. 3) Computer-BasedTraining:
A new computer-based training system is bringing interactive learning
experiences to crew members and managers rightin the restaurants.
Levels Of Training
1) Crew Member’s Training:
. Crew members are trained extensively on all food safe At
McDonald's, training never. Trainees work whilethey learn the
operational skills necessastopsy and food handling processesry for
running each of the 25 positions in restaurant - from frontcounter to the
grill area.
2) Manager’s Training:
McDonald's is dedicated to professionaltraining and development. The
averageMcDonald's restaurantmanager 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
Orientation
• MissionStatement:
• “Values that last a lifetime”
• Provides new employees with basic background information they need
to performtheir job satisfactorily.
• New employees get a handbook:-
- Working hours
- Performancereviews
- Vacations
- Employee benefits
- Personnelpolicies
- Safety measures and regulations

9. • The orientation is performed by the HRD Manager and the employees
are introduced to their supervisors.
• PERFOMANCE APPRAISAL AND INCENTIVES SYSTEM OF
MCDONALDs:-
Performance Appraisals-
• McDonald’s conducts performancereview semi-annually.
• Some standards aremade and defined according to which the
employees haveto 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 performanceof employees: out
standing ,excellent, good, need improvement
• Incentives
Incentives in McDonald’s aregiven to
employees on the basis of performance.
Types of incentives:
1. Cash Based
• Attendance Allowance
• Annual Allowance
• Medical Allowance

10. • Leave Fair Assistance
• 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 areallowed to chooseany
area for tourismin Pakistan with family for 10 days.
2. Non Cash Based
• Crew Of the year
• Crew Of the month
• Branchof the year
• Access togift certificates
• Free food
Rewards
The rewards aregiven on the basis of the performanceThere is arise of
10% in salary and if performanceis also counted then 20%increment
given at anytime of the year.
• Benefits
McDonald’s benefit program is designed to attract, energize, reward
and retain talented people who will producesuperior business results
and enhance their leadership position. MacDonald provided health
insurancebenefit to its full-time employees.
Mission Statement:

11. “We know we can’t afford everything for every one but neither dowe
deny toany one.”
When employee joins the McDonald's management team, he will
receive the following:
Profit Sharing:
Fully funded by McDonald's. Sharein the profits of the mostsuccessful
quick servicerestaurantin 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 personalreasons or to study for examinations or school
projects.
Company Car:
Restaurantmanagers are eligible for a company vehicle after only three
years of service.
Educational Assistance:
McDonald's offers an educational assistanceprogram 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 thoseworking in the offices are given
uniforms
Flexible hours: Therestaurantopens for business 18 hours a day and
that means work at McDonald's can fit into anyone's schedule.
Schoolwork, family or personalactivities can be scheduled around
working hours.
Workplace Safety

12. “McDonald's restaurants haveworkplacesafety programs in place to
ensurethat McDonald's high safety standards and procedures areclearly
communicated and reinforced day-to-day. As an important member of
McDonald's team, Employee will be taught to identify and report any
potential hazards and encouraged to suggestways that health and
safety can be continually improved.”
Special Precautions
• Use gloves
• Apron
• Hand Cleansing Gel (HCG):
After every 30 minutes, there is a call from the floor Manager to all the
employees on the floor to apply HCG on their hands to kill the bacteria.
• Hand Washing:
After every 1 hour, there is call from the floor manager to all
employees on the floor to wash their hands.
• Tender Loving Care (TLC)
• Fire preventionprogram
Separation:-
Reasons:
1)Disciplinary:
 Violation
 Stealing
 Confrontation
2) Performance:

13. Poor Performance
McD’s Key to Success
 McDonald’s believes that the growth and success of restaurants and
company is achieved with the help of their employees
 Launches the new products according to different taste and
requirements
 Keeping the major markets and expanding their business in the
emerging markets
 Different prices according to different geographical areas
Time to time McDonald’s enhances its own brand image
Awards
 HR ExcellenceAwards 2009: MostEffectiveRecruitment and Retention -
Heart of England NHS Foundation Trust
 HR ExcellenceAwards 2009: MostEffectiveUse of Internal
Communications - Northern Rail
 HR ExcellenceAwards 2009: Outstanding EmployeeEngagement
Strategy - Birmingham City Council
 HR ExcellenceAwards 2009: MostCompelling Motivation Scheme –
Ladbrokes
 HR Excellence Awards 2009:BestLearning and Development Strategy -
McDonald's Restaurants
 HR Excellence Award 2007:HRInitiative“ The People Project”
 HR Excellence Award 2006:HRDirector of the Year –David Fairhust

14. Recruitment Strategies
• METIME(onlineprocess): Recruitment costs down by 60%
• Positions: Each individual restaurantis responsiblefor filling hourly-paid
positions.
• Types of Recruitment: Externaland Internal.
• Candidate’s ratio: The Ratio for selecting the employees is 1:5
• Training Facility: Used by managers while searching new employees
• Effective RecruitmentAward: HRExcellence Awards 2009.
Strategic Learning & Development
 Focus Strategy to gain competitive advantage –
• Flexibility
• Field Based Training
• Leadership Program
• Extended Hours Workshop
• Customer Service
• Cost Leadership
• Outcomes
• Speedy Delivery
Major Findings
• At McDonalds, the corporateculture and management system are
strictly imposed, detailed operating manuals followed to the letter and

15. an extensive field organization checks on each storeto enforce
standards.
• The organizational development focused upon generating revenues
fromthe existing operations.
• The biggest change is the expansion in the menus based upon the
productdevelopment strategy, and market expansion strategy,
• They give different trainings to their employees/managers to work in
more productiveway, and to achieve the goals of the organization.
• The domestic growth has slowed as a result of marketsaturation but
McDonald’s globalfood service business delivered good results, and
was possibleonly 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.
WHICH IS MORE IMPORTANT – RECRUITING
OR RETAINING ?
Uptron Electronics Ltd is an internationally reputed electronics firm. It attracted
employees from internationally reputed institutes and industries by offering high
salaries, perks, etc. It had advertised for the position of an Electronics engineer
some years back. Nearly 150 candidates working in various electronics firm
applied for the job. Mr. Sashidhar, an Electronics Engineer Graduate from Indian
Institute of Technology with 5 years of working experience in a small electronics
firm was selected among those interviewed. The interview board recommended an

16. enhancement in his salary by Rs.500 more than his present salary at his request. He
was very happy and was congratulated by his previous employer for his brilliant
interview performance and good luck. Mr. Sashidhar joined the company with
great enthusiasm and also found his job to be quite comfortable and challenging
one. He found that his colleagues and superiors were friendly and co-operative.
But this didn’t last long. After one year of his service, he slowly learnt about a
number of unpleasant stories about the company, management, the superior-
subordinate relations, rate of employee turnover, etc. But still he decided to
continue with the promise that he made in the interview. He wanted to please and
change the attitude of management through his performance, commitment and
dedication. Looking at his great contributions and efforts, the management got the
impression that he is well settled will remain in the company for a long time. After
sometime they all started taking undue advantage of him and overloaded him with
multifarious jobs and there by ridded over him. As a result, his freedom in deciding
and executing was cut down to size; his colleagues started assigning their
responsibilities to him. Consequently, there were imbalances in his family, social
and organization life. It was quite surprising to the general manager to see the
resignation letter of Mr. Sashidhar one fine morning. The general manager failed to
convince him to withdraw his resignation. The general manager wanted to appoint
a committee to go into the matter immediately, but dropped the idea later so that
the company’s image doesn’t get spoiled.
ANALYSIS Thus, from this case study it is clear that retaining is much more
important than recruiting. What’s the use and benefits of recruiting quality
employees if they cannot be retained by the organization in a proper manner. The
purpose of recruitment is fulfilled when the employees selected from a pool of
qualified applicants are retained in the company by keeping them satisfied in all
aspects. They must be provided with better working conditions, better pay scales,
incentives, recognition, promotion, bonus, flexible working hours, etc. They should
treat the employees as co-owners and partners of the company.