ASSIGNMENT OF HUMAN RESOURC MANAGMENT

Human Resources Management at McDonald's

 Introduction
 Human Resource Analysis
 Job Analysis
 Planning And Forecasting
 Recruitment
 Selection
 Training
 Development
 Performance Appraisal
 Compensation
 Incentives
 Benefits
 Employee Relations
 Conclusion And Suggestions

SUPERIOR
 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 Service

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”

 . 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

 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”

 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

 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.

 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 MEMBER:
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 hasn 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:

 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:
The 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 out 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:
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.
 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 out 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:

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.

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.

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.

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 work.

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 atmostexecutive 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
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 theirrestaurant 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 n 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.