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Title: “A CRITICAL INVESTIGATION OF HOW

EFFECTIVENESS OF TRAINING AND DEVELOPMENT

INFLUENCES PROFITABILITY OF McDONALDS, UK.” (12,500)

MBA DISSERTATION MODULE

Supervisor name: xyz

STUDENT NAME

Registration No:

Academic Year 2010-2011

Hand in Date of Dissertation Dec 2012

Statement of Originality and Authenticity

I confirm that the dissertation I am submitting is an original work. This authentic piece of work written

by myself that satisfies the University rules and regulations with respect to Plagiarism and Collusion. I

further confirm that I have fully referenced and acknowledged all material incorporated as secondary

resources in accordance with the Harvard system.

I also certify that I have taken a copy of the dissertation, which I will retain until after the Board of

Examiners has published the results, and which I will make available on request in pursuance of any

appropriate aspect of the marking and moderation of the work within the University Regulations.

Name:

Registration Number: (Sunderland number, not EThames number)

Programme: MBA

Study Centre: EThames Graduate School

Date:

Signed ………………………………..

Please note that Dissertations will not be assessed without the inclusion of this declaration by the

student

Please note that Dissertations may not be assessed without the inclusion of electronic copies

which may be submitted through the ‘turnitin’ software to check for authenticity.

Supervisor’s signature: ……………………………….

Date: ……………………………….

Acknowledgement:

I would like acknowledge all those who helped me through this dissertation. Before everyone

else, I am grateful to God, who empowered me and made me capable of exploring things from

the universe. It was only through HIS blessing that I was able to carry on with my thesis very

successfully.

I want to express my deepest gratitude to my Supervisor of this dissertation Mr./Ms/Mrs. your

supervisor name for his/her uninterrupted guidance and backing. Also I am thankful to Mr.

(please write names of resource ppl who helped u through) this, Mr. this, Mr. this, Mr. this, Mr.

this who helped me to run this research on critically evaluating the motivation of employees

specifically taking the scenario of business of Tesco, United Kingdom. If their continuous

guidance was not with me I would not have been able to accomplish this thesis.

This consolidation thesis document has been complied purely by myself by conducting the in

depth research on Tesco employees to learn how motivation helps in getting them to give

better work performance and hence improving business by observing close example of different

organizations. I carried out the basic research, reviewed the literature on motivation and

human resource management documents of Tesco. For the support material, I collected the

secondary data for this study from human resource management journals, and primary data

has been collected through direct and participative observation and questionnaires. The

employees of Tesco are highly acknowledged to be the respondents of this thesis. With their

responses this thesis would not be possible to be accomplished successfully.

I am thankful to the regional Executive manager of Tesco who have me permission to run the

research on employee’s motivation of Tesco supermarkets located in United Kingdom and

permitting me to gather the respective information for my thesis. I am grateful to the help of all

of these people and efforts to help me carry on with my thesis report.

Date:

Institute: Your institute/University name here.

Abstract: (300)

1. Chapter one: Introduction: (2000)

The nature of this study is going to critically investigate the effectiveness of training and development

procedures and how it affects the profitability of McDonalds. The central focus of this dissertation is to

study the practices and strategies of training and development within the organization. The research

revolves around the training policies that help employees develop and grow professionally.

The topic of the study is meant to focus on McDonalds because of the sustained and always improving

quality of McDonalds customer services. The staff of McDonalds is trained for quality assurance. The

effectiveness of training and development leaves very positive impact on the organization.

1.1. Research question:

The research is going to answer the following research question:

Q. How does the effectiveness of training and development of employees influence the profitability at

McDonalds?

1.2. Purpose of Study:

The purpose of this dissertation is to run an in depth study to evaluate the effective training procedures

and the ways it contributes in development of employees career. The critical investigation will evaluate

how training and development contributes towards increasing company’s profitability perpetually and

constantly.

1.3. Aims:

The aims of this dissertation are to figure out the effectiveness of training and development, and the

way training and development impacts profitability particularly at McDonalds and critically evaluate the

whole scenario. These aims are fulfilled through logical explanations of every aspect researched about

the training and development and how it is related to profitability.

1.4. Research objectives:

The objectives of this research are:

1. To identify and evaluate the effectiveness of procedures of training and development of

employees and how it related to changes in profitability at McDonalds.

2. Identify the requirements of changes necessary for training and development practices.

3. Compare and evaluate the way the methods of training and development of employees lead

towards most effective practices.

4. To draw a conclusion and make recommendations about the role of employees’ training and

development and its impact on their output contributing towards profitability.

These objectives will be critically analyzed all through the thesis using effective tools and techniques.

1.5. Rationale and scope of Study:

McDonalds is a chain of fast food restaurants which is continuously dealing with customers. The

customer service has to be top notch with respect to quality in place, customer service and

management. The skills of employees must be developed in a way that they conform to company’s

policies and strategies. If the employees are not trained, they can not retain their performance

according to expectations of customers and the company at the same time (Bowen 2007). Training of

employees is also essential to deliver the same quality service in every country. The taste of food has to

be consistent globally to retain the brand name repute.

The scope of this study is to explore the training and development practices of human resource

management. The impact of training and development on profitability is the focus of this thesis. The

research is limited to McDonalds outlets in United Kingdom. The time for this research is limited from 4

to 6 months because it is purely an academic project.

1.6. Problem statement:

This research is focused on the problem statement of:

“The needs of employees and their personal development goals must be planned to align with

successful training and development of employees.”

The needs of employees and their growth plan must be figured out to know if the employee has the

capability and motivation to go any further in his career or not. The training is an expensive process. In

order to prepare an employee to face the future challenges, s/he has to be upgraded in their various

skills.

1.7. Background of Research:

The values of McDonalds are customers come first, commitment to people, ethical business, returning

back to the communities, growing profitably, and perpetually improving (Jack 2012).

In order to abide by these values and meeting the quality terms with dedicated training, coaching,

mentoring, and learning to develop are crucial. The customers look for quality food, and excellent

customer service whereas the company is looking for customers and well trained staff to deal with

customers courteously (Siteground 2011). The staff’s skills need to be improved in their communication,

courtesy, keeping restaurant culture friendly and relaxed. The basic purpose of training is to make

employees learn new ways of dealing with challenging situations effectively and efficiently (Shaw 2010).

The employees’ needs and requirements about their personal growth plan are most important to know

how motivated they are to grow in their profession. Some of the employees are after tangible benefits

like salary, some are after intangible benefits like big post in a well known organization in the world

(Brainbrisge 2011). They keep their self esteem satisfied. Not only their plans need to be known but the

qualification of the employee matters. The major concern of trainers is to see if the trainee has the

capability to implement all the knowledge in the real life situations or not. The need assessment of

employees before training is inexpensive way of filtering who has the competence to be a valuable asset

to the company (Shaw 2010) .

The performance of employees is directly related to training and development. Some employees like to

work hard to be selected for a training. They see the incentive of promotion, more salary and a

credential of the training from a company in the end. These incentives satisfy their self esteem and they

work harder to show their best performance (Wilson 2005).

The training leads to development of employees and company at the same time. This mutual benefit

becomes the core competence for an organization. Profits are the outcomes of the excellent

performance of employees which is achieved by enhanced skills. Training is about whole person

development not just one skill. Unlike the traditional way of training, the trainings focus on transforming

the person into an employee with a realistic corporate attitude to develop. The expectations about a

person do not change over time (Alan 2010).

1.8. Company Profile:

McDonalds is the world famous and a leading food service retailer. There are more than 33,000

restaurant operating in 119 countries. The mission and aim of the restaurant is to improve the social and

environmental performance (McDonalds 2012). More than 80% restaurants are franchises.

The first McDonalds was opened by McDonald brothers in 1940. In 1954 Ray Kroc was appointed the

first franchisee by Mac and Dick(McDonald brothers) in San Bernardino, California. He later in a year

opened a restaurant in Des Plaines, Illinois and set the base for McDonalds corporation in Chicago. The

good service and development created the company motto to be quality, service and cleanliness by

1957. In next two years the company managed to open their 100th restaurant (McLibel 2006).

In 1961, Ray Kroc took over the company by buying all rights to the company and hamburger university

opened in Elk Grove. In two years, the company sold one billion hamburgers, managed to open the 500 th

restaurant, Ronald McDonalds made a debut and 500 th student graduated from his university. The

income reached to one million dollars by then. In 1964, the fillet to fish sandwich was introduced. In

1965, the corporation went public. The stock price range varied from 15-33.5. In 1966, McDonalds was

listed on New York’s exchange. In 1967, McDonalds stepped out of United States and moved to Canada

and Puerto Rico. By 1968, Big Mac was launched and the 1000 th restaurant was opened in Des Plaines,

Illinois (McLibel 2006).

By 1970, there was one McDonald’s restaurant in every city. The chain spread steadily. Golden Arches

appeared in three continents when the stores opened in Holland, Japan, and Suburb of Sydney. In 1979,

a McDonalds opened in Brazil and spread Ronald McDonald to South American states. By 1992,

McDonalds was present in six continents of the world. The restaurants opened in Morocco, Casablanca

and then in four years the company expanded to the exactly 100 th country. According to a claim,

McDonald’s opens its another restaurant in every three hours (James 2009).

The restaurant was already spread to 31,966 locations in 118 countries. Only 45% of these are US

restaurants. The daily customers are more than 58 million. According to The Economist dubbed the Big

Mac Index to how the global ranking of currencies that purchase power at local Mickey D’s. the biggest

seller of McDonalds is France (James 2009).

1.9. Expected Research Methodology:

The research methodology of this thesis is going to be a mixed research methodology. It will get the

benefits of both qualitative as well as quantitative researches. The data collection will be done through

both qualitative and quantitative sources of data. The research approach will be deductive to critically

investigate and analyze the affects of training and development on profitability of McDonalds. The

research philosophy of positivism will be most useful for this study because it will comprehensively

described the objective aspects of research. The data collection will be carried out through secondary

and primary sources of data. The secondary sources of data will be the use of case studies, electronic

libraries and journals to explain the phenomenon. The primary data will be collected through surveys

and questionnaires. The research will be empirical.

1.10. Research Layout:

The dissertation is carried out sequentially in the form of chapters that represent progress. The layout of

this research is given below:

1.10.1. Chapter One:

The first chapter entails the introduction of dissertation. The research problem statement,

research question, aims, purpose, objectives, company profile, rationale of study, and complete

layout of the research is explained in this chapter. The research background explains the reason

why the research is being carried out.

1.10.2. Chapter Two:

The second chapter explains how the previous researches are evident in contribution towards the

problem statement. The literature about training and development is critically evaluated through

pedagogical evidences. Through theoretical framework the topic of dissertation is investigated.

1.10.3. Chapter Three:

The chapter three elaborates the research methodology for this thesis. This chapter gives complete

information about research methodology, paradigm, philosophy, strategy and data collection methods.

The complete research analysis process is described how it is analyzed.

1.10.4. Chapter Four:

The chapter four is about the data and analysis. The comprehensive details of data reviewed, their

collection methods and analysis is carried out step by step. The complete data justification is given

through critical evaluation using tools and techniques to justify every step. The problem is completely

investigated through logical reasoning.

1.10.5. Chapter Five:

The chapter five explains the conclusion of the study. Eventually, the recommendations will be given as

suggestions in the problem. It gives the future orientation about how the future problems can be

refrained from.

2. Chapter Two: Literature Review: (3000-3500)

The introduction gives the aims and objectives to fulfill as the platform to carry out the study. In order to

learn the objectives of identifying and critically investigating the way procedures of training and

development in relation to profitability and the requirements for training, the exploring of information is

carried out below. The literature review continues the aim and objectives of this study to a step further.

Training is essential for inducing the positive progressive approach in the company. It is defined as an

activity that gives outcomes of learning. The purpose of training is to develop a team that is efficient and

wise to meet the challenging requirement of future. Training builds confidence, and gives direction to

employees. Training is one good way of enhancing knowledge, skills and to learn about the dynamic

environment of an organization (Noe and Ford 2001).

Employees require training for a lot of reasons. These reasons fall into two major categories. The

first category is the training to fill a performance gap during performance management. The

second category is to fill growth gap. This means to promote or open position in organization

(Shaw 2010).

2.1. Definitions of Training and Development:

According to William Fitzgerald, training is the process of acquiring knowledge and developing skills for

the existing job, a tool to help employees contribute in an organization and be successful in their posts,

and a means to the end (Fitzgerald 2002).

Training and development is planned program that is followed by instructions that enable

employees to enhance their capabilities and skills to finish their job more efficiently (Armstrong

2009).

2.2. Purpose of Training and Development:

The basic purpose of training is to enhance capabilities of employees. There are several methods to

enhance capabilities but no other method is more effective than training and development.

Organizations open training opportunities for their employees to get the best performance from them

(Anderson 2000).

(Wells 2011)

Training is an essential function of human resource management. It is a subsystem of an organization

that ensues reduced randomness and enhanced learning associated with professional and behavioral

changes taking place in a structured and organized work places (Izba 2010).

The extensive training and development of employees’ increase functional competency of employees.

When their performance exceeds the document performance standards they become a useful asset for

a company. Once the competence is built up it establishes a good rapport with clients. It follows an

efficient and effective training and development program (Deft 2006).

The corporate culture runs training of employees to do some gap analysis that exists in the performance

of their human resource. They target competency and do reassessment during their on-the-job training.

The reason corporate trains its employees is because they require the increase the efficiency of

employees by doing and helping their employees do their curriculum development for long run (Wells

2011).

When the gap analysis is done based on role and/or position of employees the skills and gaps of

employees are identified. The curriculum development is the whole process of training and

development. Once the curriculum has been determined and on the job training has been done, the

efficiency and performance of employees increases (Deft 2006).

2.3. Significance of Training and Development:

Organizations give training to their human resource to retain their staff and for many associated

reasons. The human resource is a valuable resource because their performance can trigger or slower

down the process of getting more profits for the firm or organization. One meaning of training is

considered to measure the performance of employees. The logic is that the employees who show

improvement are the focus of human resource manager to send for more training to help him/her give

better results (Goldstein 2011).

Training and development of employees improves their performance as it is a motivation for many.

Established organizations give training to their employees to cater to complex situations and also to be

able to cope with abstraction of a level above (Luke 2011).

Training and develop is an extensive process that does not entertain the wrong employees to be

undergoing a training that he is unable to cope with. This requires a good survey to be conducted on

employees to learn their capabilities. The reason being a train employee may become the competitive

advantage for a company. Organizations spend a lot of budget on training of their employees (Hall 2008).

The long term profitability of an organization is based on its pace with updating their employees in their

fields of proficiency. Training and development increases efficiency of employees and determines

profitability. Good employees’ growth in their profession is a policy of organizations to invest in their

skills development also named as career development. The productivity of employees increases with

training (Wells 2011).

All of these significances address many shortcomings and weaknesses of employees. The resultant of this

process is to motivate employees to show their best performance.

2.4. Approaches of Training and Development:

There are two fundamental approaches of training and development. These two are:

2.4.1. Traditional Approach:

Traditionally there was no concept of training of employees for their betterment. They used to stick to

the view that managers are born and can not be made. Another interesting view was that it is expensive

practice which is not worth it. The traditional approach remained tradition but the modern approach

took over quicker than expected (Izba 2010).

2.4.2. Modern Approach:

Understanding the importance and outcomes of training, many corporate shifted towards training their

employees more often. It is not considered as an expensive procedure but considered as a valuable

function to businesses. Now it is also a good retention tool used by many organizations. The recent point

of view of training is that it produces smarter staff to work more efficiently than they did before. It also

yields better results in the end (Izba 2010).

The latest trends in organizations are to create a knowledgeable and learning environment in corporate.

The trained are aims to address the weaknesses of employees and sharpen their skills and knowledge

about their technical knowledge (Frost 2009).

2.5. Training and Development Process:

The training and development is a process that requires a lot of activities to be put in proper places in

order to make it effective for best benefits of the organization.

2.5.1. Step1 – Organizational Objectives determination:

The organizations have their personalized goals and objectives depending on the nature of business. The

corporate culture is a highly specific culture in ever aspect. This is why they require the best skills of

their employees. The skills are not just finance or accounting or communication skills. The training is

meant to create excellence in one specific aspect of business and sharpen all other aspects too

(Goldstein 2011).

The organization objectives assist in fulfilling the primary objectives by bringing effectiveness. The

managers have to make the organizational objectives clear to organizations and take an insightful look

into challenges that might be faced in the future (Jameson 2000).

2.5.2. Step 2 – Needs Assessment:

The organizations have to consider the individual or personal objectives of each employee and see the

way they can help them achieve their personal goals and help them enhance their optimistic contribution

in the organization. Besides these needs the functional and societal objectives have to be fulfilled? The

way the department requires the performance is functional objective and ensuring organization’s ethics

and social responsibility to needs and other society’s challenges are societal objectives. These needs have

to be looked into (Izba 2010).

2.5.3. Step 3 – Gap Analysis:

The third step in training and development process is gap analysis. The purpose of this analysis is to

indentify the job roles and description and the expectations from it. keeping these expectations in mind,

the skills and knowledge to be imparted is determined to fill the gaps (Goldstein 2011). The curriculum is

determined to make sure it will increase the performance of employee in the expected way (Deft 2006).

2.5.4. Step 4 – Training Objectives:

The training objectives are determined after need analysis of training and development process. When

the need assessment is conducted the training objectives are streamlined with individual, functional and

societal objectives to create a customized set of objectives for a company (Jameson 2000). The purpose

of training objectives establishment is to improve individual and organizational performance (Nair 2012).

2.5.5. Step 5 – Trainees Selection:

Depending on the training and organizational objectives, the trainee meeting the certain criteria and

level of skills is selected for training process. The pay scale, training schedules, course material and

hours of training sessions and technology used is communicated with trainers. The examination of all

these pre-planned aspects is made clear on trainees. With their need and gap analysis, the most

qualified employee is chosen for the purpose (Jameson 2000).

2.5.6. Step 6 – Training Methods and Mode Selection:

The step sixth is to determine the training methods and modes for giving training. There are many types

of training. The method of training to be selected based on standards and policies and need criteria of

job posts (Nair 2012). The mode of training can be computer based or manual or paper based.

Depending on the need of training required, the modes are selected to meet all requirements. The

methods and modes are identified with respect to organizational and training objectives (Jameson

2000).

2.5.7. Step 7 – Choosing the Means of Training Evaluation:

The seventh step is to identify the means of training evaluation. The training evaluation aims to identify

the effectiveness of training delivered to employees. There are various tools used to evaluate training

and development process. The best method is the one that meets all organizational goals and objectives

and aids learning in the work place to increase performance (Jameson 2000).

2.5.8. Step 8 – Administering Training:

The step 8 is when the training actually starts and is carried out. The instruction and delivery of training

takes place finally. Once the trainer has been selected and assigned to start the training, the process

begins. The trainer needs to come on the training criteria of s/he has to be fit in the subject matter to

teach, must be a good motivator, proficient in knowledge, dynamic personality, a good sense of humor,

good posture, has passion for their subject and compassion for his participants (Nair 2012).

2.5.9. Step 9 – Training Evaluation:

Training’s final step is to evaluate the training program. It is done by obtaining information about the

way it affects the training program and finally to assess value of the program in the light of this

information.

2.6. Training and Development Evaluation Models:

There are many models used to evaluate the training process. The significance of the process evaluation

is that they provide feedback to trainers which helps them improve. The evaluation makes the process

cost effectives and it also measure effectiveness of organization’s performance as well (Nair 2012).

The most commonly used way of running this evaluation is through pre-training and post-training

surveys and then comparing the expected results with actual results. Some of these models are:

2.6.1. Kirkpatrick’s Model:

Kirkpartick’s model is a four level model that measures the effectiveness of training programs.

(Salas 2009)

The first level of this evaluation model is the reaction level. It shows how much the participant liked the

training and responded t o it. Their learning is determined. The second level is of learning that shows the

attitude, skills and knowledge acquired from the training and how much of it. The third level is the

behavior or training transfer which shows the change in the behavior of employees on their job and

what exactly did they learn from it. The level four is the results (Salas 2009). This shows if the training

left a positive impact on the organization (Gratton, Hope-Hailey et al. 2004).

2.6.2. Kirkpatrick’s and Phillip’s model:

(Bersin 2007)

This models has satisfaction on level one, learning on level two and impact of training on the job in level

three, results of the implementation of training on training program and return on investment on the

payoff. The ROI is the Phillip’s analytics (Bersin 2007).

2.6.3. Philip’s Model:

Jack J Phillip gave a model to meaning the effectiveness and evaluation of a training program. Phillip’s

model has five stages. These levels are reaction and planned action which determines reaction of

participants and their planning to deal with material given to them. The second level is that of learning

which gives out information about the skills, attitude and knowledge obtained from training. The third

level is job applications which determine the exact things the participants learnt on their job. The fourth

level is business results which show if there are some measureable results acquired from it. The level

five is return on investment which is the monetary value acquired from the complete training process

(Phillip 2007).

(Phillip 2007)

2.7. Programs of Training and Development:

There are seven types of programs for training and development are used. These programs are:

2.7.1. Technical Training:

The technical training is skill specific. It can take place in a classroom if it has been decided to be a

classroom training. There are more technical sessions offered to the trainees. The hands on practical’s

are given to trainees. On-The-Job training is a one part of technical training which is aimed to enhance

work performance (Hoe 2009).

2.7.2. Quality Training:

The quality training includes customer service training. In manufacturing businesses it is knowledge of

total quality management. The aim of quality training is to improve processes and products. It is like an

on going effort that embeds continuous improvement within a process (Hoe 2009).

2.7.3. Skills Training:

The skills training is about presentations, communication skills, languages, selling, public speaking and

negotiating skills. The soft skills trainings are famous as in house trainings to employees. The efforts are

to create soft skills among employees like creative thinking skills, communication skills, and other skills

required for long term and survival of company (Hoe 2009).

2.7.4. Professional Training:

The professional training require professionals from different departments. The professionals are sent to

various institutes for this type of training. They send the employees to acquire expert qualifications (Hoe

2009).

2.7.5. Functional Training:

The functional training is also like On-The-Job training. This training is usually function and department

oriented. The trainees are given diplomas and certificates on these trainings. For instance, a Diploma in

Advanced computer science (Hoe 2009).

2.7.6. Team bonding Training:

The sixth types of training and development program is team bonding training. Organizations do heavy

investment of these trainings. They pay money to get their employees engaged in activities of team

bonding. Leadership and teamwork is the purpose for this training program. This takes place outdoor in

most of the cases some interesting examples are canoeing, and rock climbing or mountaineering etc

(Hoe 2009).

2.7.7. Managerial Training:

The last type of training and development program is managerial training. Some organizations

encourage their employees to attend seminars of other companies. The aim is learn best practices in

order to bring improvement in the current business work place. It also widens their network. Someone

times these trainings are given to help their management to widen their network with other

organizations managers to bring in innovative managerial techniques of improvement (Hoe 2009).

2.8. Miscellaneous training techniques:

Some of the very common training practices are on the job training which gives employees a chance to

work in the work post and getting the training while they are working. This is the best type of training

the gives the maximum learning. There are many other types of trainings like harassment training,

communication skills building training, diversity training, safety training, workplace wellness training,

management and leadership training, computer and technical skills training, and supervisor skills

trainings. All of these trainings are delivered depending on the nature of training required.

2.9. Benefits of Training:

There are many benefits of training. The benefits of training and development are as follows:

It is a practice that brings great value to the organization like improvements in customer services

at banks.

Training makes the employees feel that their work is appraised and acknowledged. It increases

their morale (McClelland 2002).

It gives employees motivation to perform even better at their work place.

It results in financial gains in long run e.g. the increased sales and profitability (McClelland

2002).

It enables an organization to adapt to new technologies and methods.

It increases innovation in strategies e.g. the banks are high tech in their facilities and require

their handlers to be proficient in their optimum use.

There is best utilization of human resources (Ephraem 2009).

There is development of organization along with polished skills of individual employee.

There emerges a concept of team spirit.

It reduces the turnover rate of employees (McClelland 2002).

It improves the organizational culture and enriches the learning environment.

The morale and quality of employees increases.

The corporate image becomes better (Ephraem 2009).

Collectively these are the best things for a company for long run because the skills once gained become

crucial for organizations.

The literature review above mentions the training and development, the significance and different

approaches of training and development. Majority of companies plan the professional growth and

career of their employees. This planning is effective in improving processes and performance. The

training and development process, models to evaluate performance are also discussed. Finally the

benefits strengthen the significance research. The process of training and development helps in fulfilling

the objective one. The need and gap analysis covers the objective two of indentifying requirements for

changes. The third objective of evaluating the ways and methods of training to lead to effective practices

is fulfilled by the training and development methods. The review goes step by step with theoretical and

models evidences about the way the training and development affects the financial goals in terms of

profitability.

3. Chapter Three: Research Methodology: (1250-1500)

Based on the literature review, the research will be carried on a step ahead considering the research

methods and approaches mentioned below. The research methodology is wisely selected with the best

philosophies and approaches to carry out the research according to the requirement.

Research is the process of unfolding the facts through a defined process of interrelated activities. (Ghauri

2009), This research is a business and management research which is used to find a solution to

researchable problem and a tool to gather beneficial information (Adam 2010).

3.1. Research methods:

The dissertation to critically investigate the impact of training and development on profitability of

business of McDonalds uses empirical research methodology. Empirical research addresses the

relationship expected in a structured and organized way of study between scores gained by measures. It

is based on observations that require measureable variables, causes and scores (Schwab 2001).

Empirical research will help in evaluating the effectiveness of training and development procedures and

requirements of changes necessary. It will be a mixed research methodology making use of both

qualitative and quantitative researches.

There are two general research methodologies empirical research methodology and theoretical research

methodology. The empirical research methodology evaluates a relationship between two variable and

described it in measures. The theoretical research defines researches in contextual format (Schwab

2001).

3.2. Research Approach:

The research approaches are of two types inductive and deductive. Inductive research researches the

research topic going all the way to specific from general subjectively. It is open ended and process

oriented whereas the deductive is objectively specified from the start. The selection of research

approach is determined keeping three factors in consideration; research question, history Vs

contemporary events and control over behavioral events (Rowley 2002).

This is a deductive research because it is pre specified and descriptive. It will describe the

relationship between training and development with profitability.

3.3. Philosophy of Research:

The research philosophy is the overall nature of research and knowledge base about how the research

background comes about comprehensively (Saunders, Lewis et al. 2009). It represents the broach

structure of insight and beliefs that consider theories and methods used to conduct the research

(Hoboken 2007).

The research philosophy for this dissertation is positivism because it associates to the idea of objectivism

which is promoted by scientists evaluating their point of view of social world (Cooper and Schindler

2006).

3.4. Nature of Research Data:

Data is of two types with respect to its nature. The qualitative data is the one that gives the qualities and

characteristics of research variables. The quantitative data is the one that give quantitative

representation of data in countable measures or in quantities. The nature of this research is mixed so

the both natured data will be used for finding the relationship in profitability with training and

development.

3.5. Type of Research Data:

The research makes use of both primary and secondary data for this research because of the mixed

nature of this research. The primary data is the first time collected data, so it is not manipulated and

unbiased. The secondary data is the existing data is has already been collected through previous

researches. The type of data is both secondary contributing in evaluating the primary data.

3.6. Research Analysis Methods:

The research analysis of data collected through questionnaire will be done by two methods. The first

method will be domain analysis that understands the meaning of a business and social domains. The

semantic relationship will be analyzed. The questionnaire will be created to figure out the links of two

variables in the research (Ratcliff 2010).

The second method of analysis will be narrative analysis which studies the context situations and basic

actions (Ratcliff 2010). The reason to choose these two methods is that the research is relationship

oriented. Also the qualitative data will be easily analyzable through narrative analysis and the

quantitative data will be researchable through domain analysis. It will help in figuring out the training

and development methods at McDonalds also the objective of critically analyzing the relationship.

3.7. Reason for Choice:

The mixed approach is chosen to see the training and development procedures subjectively of

McDonalds. The use of qualitative data will support the quantitative data collected from McDonald’s

employees through a questionnaire i.e. a quantitative nature of data collected through this tool. It will

give evidences from past through secondary data and the first time data collected will be from

McDonalds for the first time.

3.8. Aptness and Application:

The research methodology of mixed nature will give the flexibility of researching the relationship

between training and development and its impact on profitability of McDonalds. The research

philosophy of positivism optimistically takes the data for representing the information in the way it

actually exists at work place. The approach of deduction will conform to the mixed data and its flexibility

standards to help narrate and describe the training and development procedures and how it affects the

profitability. The philosophy, data types and approach satisfy the objective one and two. The

information regarding the relationship will be analyzed using domain analysis. The descriptive data will

be analyzed using content approach. All of the approaches and techniques fully support the

questionnaire method of data gathering and then its analysis. The research methodology is completely

applicable and resourceful. It even conforms to the limitations for this research.

3.9. Data Collection Methods:

The primary data will be collected through questionnaire. The sample size will be 100 employees of

McDonalds. The sampling technique used in random sampling from the overall population of

employees. The secondary data is collected from previous case studies of McDonalds on their training

and development procedures, the periodicals, the previous researches.

3.10. Resources:

The resources used to collect data are electronic libraries, internet, published resources, the document

of human resource department, paper published resources like books, news papers and journals. All of

the resources used are authentic resources. The previous researches give the pedagogical evidences of

previous literature to be reviewed in this context.

3.11. Ethical considerations:

The data is collected from employees through a questionnaire. This is a completely authentic and

authorized way of collecting data. Before starting the research, I took the authorization letter from the

Dean of my Faculty and showed it to management of McDonald’s management. Only with their

permission granted I was able to collect data and information regarding training and development of

employees. the human resource departments and finance departments confined to the terms and

conditions that allowed me to the limits of research that I did abide by completely. All the data collected

is for academic reasons and non commercial reasons. The data collected is properly referenced to satisfy

the authenticity conditions applying on data.

3.12. Limitations of Research Methodology:

The research has some limitations:

The data is collected through both primary and secondary sources of data but through

questionnaire and case studies, journals and previous researches respectively.

The time is limited for this dissertation because it is an academic research.

The research has limited scope to the relationship between profitability and training and

development procedures.

The sample is limited to 100 respondents.

The research philosophy is limited to positivism and approach limited to deductive.

3.13. Validity and reliability:

The research to critically evaluate the relationship of training and development procedures on

profitability of business of McDonalds is an advanced research. The research acquired the data directly

from employees working in McDonald’s outlets located in United Kingdom. This data collected is

unchallengeable because it is collected for the first time. It is completely unbiased and non-manipulated

data. The data analysis of information gathered through questionnaire will be done by domain analysis

which will completely evaluate every variable. The secondary data collected will be from previous

researches that are already tested for their data reliability. The approval of data for publications makes

them statistically fit by the critics and the researches that follow.

4. Chapter Four: Data And Analysis: (3000-3500)

4.1. Primary Data:

4.1.1. Questionnaire:

Research Questionnaire on Training and development impact on profitability at McDonalds.

Dear Employee,

Kindly, fill up this questionnaire. The survey has been designed with only academic purposes. I assure

that it will not be used for commercial benefits. All the information will be kept confidential. It is further

requested that give correct information in both parts, A and B.

Part A: General Information:

1. Employee Name: --------------------------

2. Gender:

a) Male

b) Female

3. Marital Status:

a) Single.

b) Married.

c) Other, Please specify ---------------------------

4. Age:

a) 12-22

b) 23-35

c) 35-50

d) 50 above

5. Education:

a) Illiterate

b) High school graduate

c) Diploma holder

d) BS/BA

e) MS/MA

f) PhD

6. Status of employment

a) Permanent

b) Temporary

7. Work Department?

a) Sales department

b) Accounts department

c) Human resource management department

8. Are you a trained employee?

a) Yes

b) No

9. Type of payment received (Gratton, Hope-Hailey et al. 2004)

a) Daily wages.

b) Biweekly wages.

c) Monthly Salaried.

10. Amount of salary/wages per month (McDonalds 2012).

a) 1000-5000

b) 5000-10,000

c) 10,000 above.

Part B: Impact of Training and Development on profitability:

Note: Answer all questions in Part B as they are all mandatory. Unbiased responses will be appreciated.

Confidentiality of information will be strictly kept. The numbers represent 1 for Strongly Agree, 2 for

Agree, 3 for Neutral, 4 for Disagree, and 5 for Strongly Disagree in this part.

Q# Questions/Statements 1 2 3 4 5

1. McDonalds gives trainings to all its employees (McDonalds 2012).

2. There is equal opportunity of training and development among all

employee (Panniston 2009).

3. All employees are trained when they are hired (Hrbenchwork 2011).

4. All employees are encouraged to devise their growth and development

plan (Noe and Ford 2001).

5. Employees are surveyed to check for their interest in training and

development (spruce 2007).

6. The trained employees are always showing their best performance (Noe

and Ford 2001).

7. The performance of all employees is measured time to time (Noe and Ford

2001).

8. The quality of work has improved ever since the number of trained

employees increased (Hrbenchwork 2011).

9. After training your performance is always above average (Noe and Ford

2001).

10. The quality of service has improved with training (Hrbenchwork 2011).

11. The productivity increases when employees are trained (van der Klink and

Streumer 2002).

12. There are more customers ever since the employees have started getting

trained regularly (Noe and Ford 2001).

13. The trained employees are better in customers care (Gustafsson, Johnson

et al. 2005).

14. The overall business quality has been improved with more trained staff

(Davis, Schoorman et al. 2007)

15. The business is better than that of competitor’s since management and

employees have stated getting trained (Davis and Davis 2010).

Thanks for your time and filling up this questionnaire. Your contribution to this research will be highly

acknowledged.

4.2. Secondary Data:

4.3. Analysis:

Chapter Five: Conclusion & Recommendations:

References

Adam (2010) "Primary & Secondary Data – What’s The Difference?" 1, pp.1-2.Alan (2010). "training, coaching, mentoring, training and learning design - developing people " Business

and Society 6(9): pp.1-4.Anderson, A. (2000) "Factors Affecting Employee Performance." Demand Media 22, pp.1-33.Armstrong, M. (2009). Armstrong's handbook of human resource management practice, Kogan Page Ltd.Bersin (2007). Evaluating Training Programs: The Four Levels. Learning Analytics. Berrett-Koehler, Jack J.

Phillips. 2.Bowen, S. A. (2007). "Ethics and Public Relations." The science Beneath the art of public relations 1(2):

pp.1-44.Brainbrisge, C. (2011). "Intrinsic Motivation." International Journal of Employees Motivation 2(1): pp.1-

42.Cooper, D. R. and P. S. Schindler (2006). "Business research methods (ed.)." Mcgaw-hill.Daniel E, L. L., Bernard J (1994). "Customer service: The key to customer satisfaction, customer loyalty,

and market share."Davis, D. L. and D. F. Davis (2010). "The effect of training techniques and personal characteristics on

training end users of information systems." Journal of Management Information Systems: 93-110.

Davis, J. H., F. D. Schoorman, et al. (2007). "Toward a stewardship theory of management." Academy of Management review: 20-47.

Deft (2006) "Training & Development." Human Resource Solutions 3, pp.1-4.Ephraem (2009) "Importance of Training and Development." Training and Development 3, pp.1-4.Fitzgerald, W. (2002). "Training versus development." Training & Development Journal 46(5): 81-84.Frost, S. (2009). "The Importance of Training & Development in the Workplace." Work place safety and

Health Journal 2(33): pp.1-5.Ghauri, P., Gronhaug, K. & Kristianslund, I (2009). Research Methods in Business Studies: A Practical

Guide. P. Education, London. 2.Goldstein, I. L. (2011). Training in organizations: Needs assessment, development, and evaluation,

Thomson Brooks/Cole Publishing Co.Gratton, L., V. Hope-Hailey, et al. (2004). Strategic human resource management, Oxford University

Press Oxford.Gustafsson, A., M. D. Johnson, et al. (2005). "The effects of customer satisfaction, relationship

commitment dimensions, and triggers on customer retention." Journal of marketing: 210-218.Hall, D. (2008). "Career Planning Key to Employee Retention." Journal of Property Management 65(5):

20-21.Hoboken (2007) "Research Philosophy and Research Paradigm." 1, pp.1-3.Hoe, S. C. (2009) "Human resource development: Types of training and development programs " Helium:

Where Knowledge rules 5, pp.1-7.Hrbenchwork (2011) "Quality Customer Relationship." QCR 2, pp.1-9.Izba (2010) "Training and Development." Corporate Training & Development 3, pp.2-7.Jack. (2012). "McDonald's Values." Retrieved 23 january, 2012, 2012, from

http://www.aboutmcdonalds.com/mcd/our_company/mission_and_values.html.James, R. (2009). A Brief History of McDonald's Abroad. TIME WORLD. South Korea, Times. 1: pp.1-66.

Jameson, S. M. (2000). "Recruitment and training in small firms." Journal of European Industrial Training 24(1): 43-49.

Luke (2011) "Human Resource Management." Management Study Guide: pave your way to success 2, pp.1-2.

McClelland, S. D. (2002). A training needs assessment for the united way of Dunn County Wisconsin, University of Wisconsin.

McDonalds. (2012). "Getting to know us." Retrieved 23 january 2012, 2012, from http://www.aboutmcdonalds.com/mcd/our_company.html.

McLibel (2006) "A brief history of McDonald's." McDonalds 2, pp.1-20.Nair, J. (2012) "What are the steps in training and development?" Human Resource Solutions 3, pp.1-3.Noe, R. A. and J. K. Ford (2001). "Emerging issues and new directions for training research." Research in

personnel and human resources management 10: 345-384.Panniston, P. (2009) "Equal opportunities training - Luton Borough Council - 1/4." Excellence Gateway 2,

pp.2-4.Phillip, J. J. (2007). "Measuring ROI: The fifth level of evaluation." Journal of Training and Development

8(9): pp.1-4.Ratcliff, D. (2010). "15 Methods of Data Analysis in Qualitative Research." Journal of Business

Methodologies 3(1): pp.1-6.Rowley, J. (2002). "Using case studies in research." Management Research News 25(1): 16-27.Salas, E. (2009) "Patient Safety Training Evaluations: Reflections on Level 4 and more." AHRQ 2, pp.1-10.Saunders, M., P. Lewis, et al. (2009). Research methods for business students, Prentice Hall.Schwab, P. D. (2001). Methods for Organizational Studies. L. E. Associates. New Jersey, Lawrence

Erlbaum Associates. 9.Shaw, J. (2010) "All About Training and Development (Learning and Development)." Free Management

Library 3, pp.1-8.Siteground (2011) "Customer Relationship Management." Siteground 1, pp.1-8.spruce (2007) "Type of interviews." Speedupcareer 1, pp.1-7.van der Klink, M. R. and J. N. Streumer (2002). "Effectiveness of on-the-job training." Journal of

European Industrial Training 26(2/3/4): 196-199.Wells, K. (2011). Employee Training and HR Development. Business Consulting. USA,

http://kimptonconsulting.com/services/employee-training.html?gclid=CL-MkqWN-K0CFVAhtAodfCJZsw. 9: pp.1-2.

Wilson, J. P. (2005). Human resource development: learning & training for individuals & organizations, Kogan Page Ltd.

Appendices:

4.3.1. Questionnaire:

Research Questionnaire on Training and development impact on profitability at McDonalds.

Dear Employee,

Kindly, fill up this questionnaire. The survey has been designed with only academic purposes. I assure

that it will not be used for commercial benefits. All the information will be kept confidential. It is further

requested that give correct information in both parts, A and B.

Part A: General Information:

11. Employee Name: --------------------------

12. Gender:

a) Male

b) Female

13. Marital Status:

a) Single.

b) Married.

c) Other, Please specify ---------------------------

14. Age:

a) 12-22

b) 23-35

c) 35-50

d) 50 above

15. Education:

a) Illiterate

b) High school graduate

c) Diploma holder

d) BS/BA

e) MS/MA

f) PhD

16. Status of employment

a) Permanent

b) Temporary

17. Work Department?

a) Sales department

b) Accounts department

c) Human resource management department

18. Are you a trained employee?

a) Yes

b) No

19. Type of payment received (Gratton, Hope-Hailey et al. 2004)

a) Daily wages.

b) Biweekly wages.

c) Monthly Salaried.

20. Amount of salary/wages per month (McDonalds 2012).

a) 1000-5000

b) 5000-10,000

c) 10,000 above.

Part B: Impact of Training and Development on profitability:

Note: Answer all questions in Part B as they are all mandatory. Unbiased responses will be appreciated.

Confidentiality of information will be strictly kept. The numbers represent 1 for Strongly Agree, 2 for

Agree, 3 for Neutral, 4 for Disagree, and 5 for Strongly Disagree in this part.

Q# Questions/Statements 1 2 3 4 5

1. McDonalds gives trainings to all its employees (McDonalds 2012).

2. There is equal opportunity of training and development among all

employee (Panniston 2009).

3. All employees are trained when they are hired (Hrbenchwork 2011).

4. All employees are encouraged to devise their growth and development

plan (Noe and Ford 2001).

5. Employees are surveyed to check for their interest in training and

development (spruce 2007).

6. The trained employees are always showing their best performance (Noe

and Ford 2001).

7. The performance of all employees is measured time to time (Noe and Ford

2001).

8. The quality of work has improved ever since the number of trained

employees increased (Hrbenchwork 2011).

9. After training your performance is always above average (Noe and Ford

2001).

10. The quality of service has improved with training (Hrbenchwork 2011).

11. The productivity increases when employees are trained (van der Klink and

Streumer 2002).

12. There are more customers ever since the employees have started getting

trained regularly (Noe and Ford 2001).

13. The trained employees are better in customers care (Gustafsson, Johnson

et al. 2005).

14. The overall business quality has been improved with more trained staff

(Daniel E 1994).

15. The business is better than that of competitor’s since management and

employees have stated getting trained (Davis and Davis 2010).

Thanks for your time and filling up this questionnaire. Your contribution to this research will be highly

acknowledged.

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