HR Structure Of Mcdonald By Farhan Abid

Slides by Farhan Abid 1

HR Presentation

McDonald's &

HR Manageme

nt System


Topic Covered

Company Overview Organizational Structure HR Management System Human Resource

Planning


Topic Covered (Cont’d)

Recruitment & Retention

Training & Development

Performance Appraisal


Company Overview

McDonalds is the largest and best-known global foodservice retailer with more than 30,000 restaurants, serving 47 million customers each day in 118 countries. We plan to expand our leadership position through great tasting food, superior service, everyday value & convenience. Fortune Magazine released its 2007 list of America's Most Admired. Companies ranking McDonald's Corporation as one of the top companies in the Food Services Industry category.


Company Overview (Cont’d)

In addition, our key attributes of reputation rankings on Social Responsibility, Financial Soundness, People Management, Quality of Management and Quality of Products/Services all rank in the top 10. McDonald's is one of the most valuable brands in the world. Join our Corporate Analysis and Support team and find out firsthand why Fortune Magazine calls


Drive-thru

McDonald’s opened its first drive-thru window in Sierra Vista in 1975, Arizona to accommodate a more mobile society.


The Happy Meal

Sine 1979 the Happy Meal has been making kids visits that much more special. Clubs the world over collect Happy Meals toys and boxes.


Today – 21st centuryMcDonald’s has sold well over 100 billion

hamburgers, prepared more than 6.8 million pounds of French fries every day, and more than 50,000 students have graduated from “Hamburger University”.

Approximately 85% of McDonald’s restaurant business world-wide are owned and operated by franchisees who are independent and full time operators. The corporations' revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants.


Today – 21st century (Cont’d)

McDonald's revenues grew 27% over the three years ending in 2007 to $22.8 billion, and 9% growth in operating income to $3.9 billion. McDonald’s was naming Entrepreneur’s number-one franchise for 1997.


Organizational Structure

The organizational structure of an organization largely dictates the effectiveness of the firm in its management systems. It gives an impetus for work coordination efficiency. Herein, the organizational actors and processes are embedded in a larger organizational system with unique structural descriptions. Industries like McDonald have been able to consider specific organizational structure.


Organizational Structure (Cont’d)

The organizational structure of McDonald is very common among fast food chains. First there are board of directors or known as the top management which include the CEO and the owners followed by different departments such as human resource, audit and accounting department, operations department and information technology department. The company has also operations manager which handles the daily tasks of the service crew.



In McDonald, there appeared to be a product controller and crew leader who were non-managerial employees and there are managers who are always present. The managers are responsible for controlling every aspect of the whole operations and service process. Since McDonald is a fast food chain, there is a hierarchy of commands. Further there are also regional manger and store manager all the way to the CEO of the company



The distinction of the management staff and the service crews was very apparent and clear by looking at their uniform.


HR Management System

As a leader in global food chain industry, McDonald know the Importance of replication and multiplication; it is required to replant standard operation, efficient management and strategic planning into every restaurant all over the world.


HR Management System (Cont’d)

From 2004 till now, McDonald has finished implementation of K/3 HR Personnel Management, Payroll Management and Report module, besides that, it also finished stimulation run of Performance Management, Employee Capacity Quality module. In McDonald, all the human resource operation can be done through

website, headquarters set organization structure and authorize related staff to enable staff run HR system in the right business group.



Headquarters can easily manage human resource and query analysis report through K/3 HR system. Base on K/3 HR system, McDonald has built HR management platform and finished

planning for organization structure, managed personnel files, input dynamic human resource data and managed payroll.



On one side, decision-maker of McDonald can have a big picture of human resource of McDonald and make proper decision, on the other side; employee can gain opportunity of training and promotion in employee development system.


K/3 HR System


Human Resource PlanningWith the intensive competition in the market

place, companies like McDonald are trying to sustain their market leadership by initiating strategies that adhere to the needs of the business environment, the company and the employees as well. This report, aims on providing intensive plan for McDonald in line with implementing a new and strategic Human resource management that cater to the needs of their employees which in return provide quality services on their target market.


Human Resource Planning (Cont’d)

The aim of the human resource management is to enhance the abilities and skills of employees through rigorous training and development and to prove recruiting and retention approach to have the best employees. In addition, this paper also discussed the reward and compensation programmed to be considered by McDonalds as well as the performance appraisal and management review, to know if the objectives of the company for change have been achieved


Human Resource Planning (Cont’d)

The paper concluded that in order for McDonald to achieve their objective of becoming the market leader, they must consider effective human resource management approach at the entire level of the company’s organizational structure.


Recruitment & Retention

One of the accountabilities of the human resource management department is the recruitment and the retention of highly qualified and skilled employees. This is considered as the primary activity in hiring competent people that would become an asset on the company. In recruiting the right employees, companies like McDonald should consider several factors; these include positive work behaviors, and technical skills


Recruitment & Retention (Cont’d)

Staffing or recruiting today has been taken a lot more serious by most management. Gaining and acquiring competent staffs at all levels of the company are more than a matter of training. It can be rooted from effective recruitment and retention programs. The recruitment and the retention programmed for McDonald may include how they filter the job applicants, the recruitment channels to be used and the type of information conveys by the industry to the applicants during the process.


Recruitment & Retention (Cont’d)


Training & Development In enhancing the Human resource

management of McDonald, the management should also consider the context of employee training and development. The new and strategic human resource management approach of McDonald should highlight the value of providing regular training and development programs for the improvement of the technical, technological skills and knowledge of the employees and the crew members.


Training & Development (Cont’d)

The training and development initiative should be conducted in the purpose of achieving growth for the employees and the corporate objectives. Accordingly, training and development refers to the acquisition of skills and knowledge that specifically adhere to the technical and intellectual requirements of the company, in this case, McDonald.



Trainings are characterized with learning through practical as well as experiential developments within the bounds of the working environment. At present, training and development programs for professional development offered by business organizations to their employees encompass the aspects of morals and principles, work attitude and behavior, field and technical know-how, and leadership potential.



All these should be taken into account by McDonalds based on the requirements of the company in order to foster productive aptitude among qualified workforce in the fast food chain.


Performance Appraisal McDonald’s management should

recognize the hard work and effort of their employee by means of giving those rewards and other benefits. However, the company must also consider having a well-established performance systems or indicators which would evaluate and measure the performance of their employees in terms of quality. After considering and implementing the new Human resource management for McDonald, it is expected that the working behavior of their employees will be enhanced within 3 to 6 months of employees.


Performance Appraisal (Cont’d)

After the implementation of the said changes in the Human resource management of McDonald, the management should be able to regularly appraise and evaluate the performance of the employees to determine any performance gap which could be detrimental to the operations of the company. Upon the completion of this evaluation, performance gaps should be noted to come up with systems which will meet the goals and objectives of the company. Performance appraisals aim on achieving two basic objectives.


Performance Appraisal (Cont’d)

The evaluation purpose aims on letting the employees know where they stand relative to the performance of their co-workers and the objective of the standards of the company. On the other hand, the development purpose aims on assessing the training knowledge needs of the service crews for both the personal and professional development

HR Structure Of Mcdonald By Farhan Abid

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