I.

Introduction

McDonald has been a well-known and valuable brand for over half a century. The company’s
mission and vision is striving to be the world’s best quick service restaurant and formalizing
their beliefs into “People Vision and People Promise.” “Quality, Service, Cleanliness and Value
(Q.S.C. and V) also became the company’s motto. The company’s first McDonald store was
built in 1940 by the original McDonald brothers, Dick and Mac. Later in 1954, Ray Kroc became
the first official franchisee appointed by Dick and Mac McDonald in San Bernardino, California.
Soon after, Mr. Kroc opened his first restaurant in Des Plaines, Illinois, and the McDonald’s
corporation was created.

The new franchise began to grow rapidly as a result of its success. It wasn’t long before the
100th McDonald’s restaurant opened in Chicago in 1961. Less than ten years after the opening of
Ray Kroc’s restaurant the company began to expand all over the United States. Ray Kroc bought
all rights to the McDonald’s concept from the McDonald’s brothers for “2.7 million in 1961.”

McDonald’s continued to have enormous growth during the 1960’s. In 1963 alone,
McDonald’s sold their one billionth hamburgers, opened their 500th restaurant, “Ronald
McDonald” made his big debut, and McDonald’s net income exceeded $1 million. In 1966
McDonald’s was first listed on the New York Stock Exchange, and in 1967 McDonald’s went
global. The company kept expanding with the introduction of the “Big Mac” and the opening of
its 1,000th restaurant, which was where it all started- in Des Plaines, Illinois.

The McDonald’s company has a wide range of loyal customers. Many people feel as if they
grew up with McDonald’s. People trust the company, and the McDonald’s concept just seems to
make people feel good. That’s why their customers are rich, poor, old, young, black, white,
Asian, and European. Though many of McDonalds’ competitors are also successful, they are no
match for the giant franchise. Other restaurants such as Burger King, Jack in the Box, and Taco
Bell simply don’t have the same image as McDonald’s. The company focuses on marketing
strategies that effectively attract a wide variety of people. They especially appeal to children in
hopes that they will become lifelong customers.

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II. OBJECTIVES

The main objectives of this case study are the following:

 To develop the service that organization provides to the society through

structuring employee confidence in a positive way.
 The purpose of Human Resources is to maximize the productivity of an
organization by optimizing the effectiveness of its employees.
 To improve, engage and preserve sufficient great employees, to implement the
activities essential to achieve organizational goal.

III. CASE

 History

McDonald’s, in full McDonald’s Corporation, American fast-food chain that is

one of the largest in the world, known for its hamburgers. Its headquarters are in Oak
Brook, Illinois.the first McDonald’s restaurant was started in 1948 by brothers
Maurice (“Mac”) and Richard McDonald in San Bernardino, California. They bought
appliances for their small hamburger restaurant from salesman Ray Kroc, who was
intrigued by their need for eight malt and shake mixers. When Kroc visited the
brothers in 1954 to see how a small shop could sell so many milk shakes, he
discovered a simple, efficient format that permitted the brothers to produce huge
quantities of food at low prices. A basic hamburger cost 15 cents, about half the price
charged by competing restaurants. The self-service counter eliminated the need for
waiters and waitresses; customers received their food quickly because hamburgers
were cooked ahead of time, wrapped, and warmed under heat lamps.

Kroc offered to begin a franchise program for the McDonald brothers. On April
15, 1955, he opened the first McDonald’s franchise in Des Plaines, Illinois, and in the
same year launched the McDonald’s Corporation, eventually buying out the
McDonald brothers in 1961. The number of McDonald’s outlets would top 1,000

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before the end of the decade. Boosted by steady growth, the company’s stock began
trading publicly in 1965.

Mcdonalds opened the first international restaurant in Canada in 1967. In 1974

Mcdonalds opened it’s first restaurant in the UK. Today, it has a chain of restaurant in
118 countries around the world including Philippines.

Caroline Lee- Andrade, owner and proprietor of the Mcdonalds palo opened it’s
first branch outside the Tacloban City.

Mcdonalds Palo is located in Barangay Pawing Palo, fast emerging as the commercial
district of the town. It was opened last September 26,2017

The starting capital prior to that business is too confidential. But HR manager said
that establishment and overall expenses was all handed by the proprietor, Mrs.
Caroline Lee-Andrade.

 Organizational Structure

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  Present Status Of The Company

The Mcdonalds Palo Is the 4th branch of McCarol Ventures , today there are six (6)
Mcdonalds branch throughout 1st district of leyte owned by Mrs. Andrade.

Their performance in 2017 showed that they ensured their fundamentals are strong,
and they aim to sustain that momentum as they continue to listen and respond to their
customers’ preferences and be present in more areas of Region VIII.

For now, the McCarol Ventures is still focused on expanding Mcdonalds in other
areas of Leyte, said Ms. Juvelyn D.Pineda, HR Managaer Mcdonalds (interviewee)

 Personnel and it’s Job Specification

JOB TITLE NO DESCRIPTION QUALIFICATION

NEEDED
MANAGER 1  Appraise stuff  Graduated in

performance and Food and

provide feedback Service

to improve Management

productivity.  At least 2-3

years working

experience in

the related

field

 With pleasing

personality

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  Have ability to

be a good

leader

CHEF 2  Set up the kitchen  Proven work

with cooking experience as a
utensils and chef cook or
equipment. cook.
 Supervise cooks  Hands-on
and assist. experience
with various
kitchen
equipment.
CASHIER 2  Track transaction  At least high
on balance sheets school
and report any graduate.
discrepancies.  Work
experience as a
retail cashier.
WAITER 2  A knowledgeable  At least high
waiter and in good school
handle with care graduate.
of customer or  Most have
guest. clear written
 Assist in keeping and verbal
the restaurant communication
clean and safe. skills.
PURCASHER 1  Purchased  Negotiation
supplies and skills.
equipment.  A good vendor

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  Willing to work knowledge.

with under

pressure

 With 2 years’

experience in the

related field.

 Management System

The management system of the company is using a software which is a The

Human Resource Information System (HRIS) is a software or online solution for the
data entry, data tracking, and data information needs of the Human Resources,
payroll, management, and accounting functions within a business. It is useful for all
processes that track and from which gathers useful and purposeful data.

The wave of technological advancement has revolutionized each and every space
of life today, and HR in its entirety was not left untouched. Early system were
focused on a right task, such as improving the payroll process or tracking employees
work hours. Today’s system cover the full spectrum of tasks associated with human
resources departments, including tracking and improving process efficiency,
managing organizational hierarchy and simplifying financial transactions of all types.
In short, as the role of human resources departments expanded in complexity, HR
technology systems evolved to fit these needs.

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  Other Information

The Mcdonalds has of course own house rules and policies both the internal and external
customers.

For employees:

 No sharing (Of meal break) Policy

 No hairnet (cannot enter the kitchen) Policy
 No AWOL (3 Consecutive absences will be terminated)
 Break policy (20 mins break every after 3 and 1/2 hours working)
 Washing hands every 30 mins or as needed.

For customers:

 No straw policy
 1 is to 1 policy of tissue

Mcdonalds makes stylish more towards eco-friendly packaging. The Mcdonalds has committed
to sourcing all of its fiber-based packaging products from recycled or certified sources by 2020.

IV. Case analysis using TQM Principles/Elements

 Strategic Total Quality Management

Strategic total quality management is an approach to the practice of human
resources that addresses business challenges and makes a direct contribution to
long-term objectives. The primary principle of strategic human resource
management is to improve business performance and uphold a culture that
inspires innovation and works unremittingly to gain a competitive advantage. It’s
a step above traditional human resources and has a wider reach throughout the
organization.

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 Recruitment & Selection
There are 100 staff (including the shifter) they hired on their first opening
according to Ms. Juvy, HR Manager.
The establishment is accepting full time, part time, and working students. And has
at least High School Graduate.
The selection of new staff is according on their interviews, orientation and
trainings, once they passed they automatically given schedules and start working.
 Training & Development

The HR Manager and the Restaurant manager are conducted an orientation before
they undergo training. Once they done they will trained for at least two (2) depending on
their schedule (full time or part-time)

This training program allows to strengthen those skills that each employee needs
to improve. A development program brings all employees to a higher level so they all
have similar skills and knowledge.

 Compensation & Benefits

The program are designed to attract top talent and retain valued employees, the
work of these professionals is a crucial one within a company’s HR division.

The compensation & benefits and reward schemes that these HR professionals
manage are not only important for retaining and motivating employees, but also for
attracting new people to the company. Salary and incentive packages are one of the main
reasons why people apply for specific jobs. The more attractive compensation and benefit
schemes tend to generate more interest in new positions.

The HR is assigned for the employees benefits such SSS, PAG-IBIG and
Philhealth, while the compensation are overtime pay, night differential, bonuses and
double pays.

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 Performance Management

The mcdonalds offers three (3) basic or stages for employees development:
Coaching, corrective action and termination.

The first is coaching, it is to work with the employee to solve performance

problems and to improve the work of the employee, the team, and the department.
Employees who respond positively to coaching and improve their performance can
become valued contributors to the success of the business.

Second is Corrective action, it is a process of communicating with the employee

to improve behavior or performance after other methods such as coaching and
performance appraisal have not been successful. All employees are expected to meet
performance standards and behave appropriately in the workplace.

Lastly is progressive employee discipline where his or her employment with the
employer is permanently severed either in whole or in part of any work or performance
remaining to be done under a contract.

 Rentention

The success of restaurant is normally assessed on the standards of quality, service

and cleanliness which it is able to deliver. These are totally dependent on the quality of
the people restaurant is able to recruit turnover rate.

Retention is an effort by a business to maintain a working environment which

supports current staff in remaining with the company. Many employee retention policies
are aimed at addressing the various needs of employees to enhance their job satisfaction
and reduce the substantial costs involved in hiring and training new staff.

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V. Summary, Conclusion and Recommendation

For any fast- food joint, in this case Mcdonalds to be success the first principle should be
“Customer is the king”. But, service is not the only factor. The quality of the products delivered
must be hygienic and nutritious so as to serve their purposes. The competition is fast food
industry is on an all-time high, so the cost along with the quality would be a deciding factor for
the customers. An organization success doesn’t rest in the management hands. The responsibility
lies with each and every employee and franchise. The employee has to work for the organization
as their own. The process of organization is to be adhered to. This measure of this adherences
and changes in the organizational strategies according to the requirements would lead to better
business. The organizational leaders should not only implement policies but also incorporate
performance measure exercises to ensure that the processes are being adhered to. Effective HR
strategies cannot survive in a vacuum. To be effective, they must be aligned with organization’s
strategic vision. The vision will provide an indication of where the company is heading and the
people resources needed to help it get there. HR leaders should review the company’s current
vision to determine ways in which HR activities can support that vision.

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VI. References/ Literature Cited

https://www.thebalancecareers.com/human-resources-information-system-hris-1918140

http://mcdpopculture.blogspot.com/p/katie.html

https://www.leytesamardailynews.com/mcdonalds-to-open-in-palo/

https://www.smartsheet.com/strategic-human-resource-management

http://www.businessdictionary.com/definition/employee-retention.html

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