Human Resource Management at Mc Donalds 1

8/2/2019 Human Resource Management at Mc Donalds 1

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Human Resource Management in McDonald's

We select McDonald's to analyze its training, education and benefit through overview its history and job

structure Furthermore, we compare McDonald's in US with McDonald's in China on those of standards

mentioned above. Finally, we give some constructive and rationalizative suggestions.

Students' name: (Erica) (Michelle) (Candy) (Kalai) (Penny)

The Concept of HRM

What exactly is 'Human Resource Management'? Many people find HRM to be a vague and elusive

concept--hot least because it seems to have a variety of meanings. This confusion reflects the different

interpretations found in articles and books abort Human Resource Management, A philosophy of people

management based on the belief that human resources are uniquely important to sustained business

success. An organization gains competitive. advantage by using its people effectively, drawing on their

expertise and Ingenuity to meet clearly defined objective .HRM is aimed at recruiting capable, flexible

and committed people, managing and rewarding their performance and developing key competencies.

The HRM model emphasizes:

The need to search for new ways of working.


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The central role of managers in promoting change.

The treatment of workers as individuals rather than pan of a

collective work force..

The encouragement of workers to consider management. as "priers" rather than as opponents --'us

and us', rather than 'us and them'.

Why is HRM Increasingly Important?

Form a Business Process Parspentive Caker and Bititci(2001) state that:

"One many summarize that the 80's were all about automation .The 90's have been about people, this isevident in the development of Tom concepts throughout the 90's focusing on delegation, involvement

ownership cross functional teamwork, self managed works teams and so

on"' Therefore, HRM (People Management) is a critical nigh advancing the business results.

'This report Primarily focus on Human Resource Management. It shows us what the usage of human

resource management and how does it work in the company.

Now we know the importance of HRM. According to the teacher's requirements and after a careful

research., we just take McDonald's for example to write a report about HRM at McDonald's. The

information and the material mainly came from the internet, a few of them came from our textbook..


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McDonald's: A case study of the face food industry(US)

Let us come to the first part :

Overview

1. The Company

McDonald's is the largest food service company in the world. In 1993, annual sales stood at 23 billion

dollars. It is also one of biggest employers in the United States , with over half a million workers .The

company has roughly 10,000 locations Which include the standard sit-in restaurants, drive through

windows, and satellite sites. McDonald's dominance in the fast-food industry is not likely to disappear

anytime soon. Tile Company is expanding continuously, as at December 2000, McDonald's and its

franchises operated over 28,700 restaurants worldwide in 120 countries and territories, serving food

and drab to over 45 million people daily:

Only fifteen to twenty per cent of the restaurants are actually company-owned. The rest are franchises,

run by 2,659 independent owners who pay a fee of between $400,000 and $700,000 for a franchise.

McDonald's licensing department handles the fee structure on a case by case basis, and there are a wide

variety of license fees determined by property and equipment costs. A skilled franchisee can earn a sex-

figure income from a single restaurant; most own 2 or more restaurants.

2. The Job structure


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an1ployees of McDollald's fall into three groups restaurant workers, corporate staff, and franchise

owners. The fast group is the biggest a local Mcboald's restaurant usually employs between 50 and 65

people. Company staff members work either at the corporate headquarters or at one of 40 regional

offices.

In the restaurants crew members constitute the entry-level position and are by far the most numerous.

A large majority are part-time workers, roughly three-quarters. Their wages are low. Swing Managers

constitute the first true managerial position in the hierarchy, although their hourly wages are only

slightly higher than crew member wages. Assistant Managers and higher are salaried. There is one

Restaurant Manager per McDonald's restaurant.

According to company literature, approximately 12% of all teens currently employed in the U.S. work for

McDonald's. Turnover at the crew-level employees are teenagers. The remainder includes seniors,

working mothers, and "transitional" workers in the 20-25 age range.

The overview above just shows us the history and the structure of McDonald's.

Now come to the second pat:

The McDonald brothers' first restaurant, founded in 1937. From sitting on an outdoor stool or in their

cherished new autos to in indoor restaurant and from the hot dog to the Big Mao and Happy Meals, it's

tremendous differences. Along the way, it built one of the world's best-known corporate icons and its

most ubiquitous store. Why McDonald's becomes increasingly popular and successful? The philosophy

was neatly summarized: What ever people ate, McDonald's would be the ones to sell it. Furthermore, its

famous even due to its quality food and the ways of management.

Here we just focus on the ways of management at McDonald's, such as training, education and benefit.


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Training

Employee training at McDonald's is highly structured. Ends-level workers are first taken through the

basic Crew Training System. The program consists of on-the job- training and is largely vocational. Each

stage of advancement beyond the crew level then entails a new training program, with the skills

becoming more complex and generalized.

Training begins immediately with a one-hour orientation on the company. Each restaurant has its own

video player and training room. Step--by --step manuals and video tapes cover every detail of the

operation, everything from how to make a Big Mao to a shake. Each restaurant has 25 stations from the

grill area to the front counter, Trainers use a series of checklists as new crew members move through

the restaurant. A level of competency is demonstrated and the activity is checked off on the SOC--

Station Observation Checklist. There is a follow-up SOC to get certified on the station.

One a crew trainers has been promoted to swing manager and performed successfully, he or she is

eligible for the Management Development Program. It provides technical and functional management

skills for employees at the swing manager level and above. The first step is the Basic Operations Course,

which takes several months to complete. It is a course Which covers fundamental restaurant opinions.

The nab in the sequence is the Basic Management Course, Which teaches leaderships, time planning,

and crew recognition. In the intermediate Operations Course, students are trained on crew recruitment

and retention, store leadership and decision-making. The final course in this sequence is the Regional

Equipment Course.

Once a front-line crew member has progressed to the position of assistant managed, he or she is eligible

to attend Hamburger University , the Company's world wide training center for management personnel.

Approximately 2,500 managers and potential franchisees take part in the Advanced Operations Course,

or AOC. The Management training curriculum at Hamburger University has been altered in scope:almost 80% of the advanced operations Course is now devoted to enhancing communication,

interpersonal, and human relations skills. Teaching methods have shifted from lecture format to include

role playing with video feedback and small group exercises. All managers are required to receive training

from hamburger University at least once every 5 years. New emphases include goal setting, diversity

management, team building, and employee development.


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The company has plans for a certification program which will govern how employees progress from the

crew to the level of restaurant managers. Plans are also in place for a Workplace Skills Certificate. It

would be given to crew members who have mastered a set of essential workplace skills, and thus

provide a "walkable credential" to enable them to move onto another position within the consumerservice industry. McDonald's is a quick service restaurant business committed to 100% satisfaction.

Macdonald's independent Franchisees and Company-owned restaurants serve over 22 million

customers every day around the world. Each and every one of these customers deserved great services

from the moment they approach the counter or drive-thru window until they leave the restaurants. We

depend on the employees in the restaurant, whether employed by an independent franchises or by

McDonald's Corporation, to provide a fast friendly and courteous experience to all guests so they will

visit us again and again. That's why McDonald's Independent Franchisees and McDonald's Corporation

look for

individuals who like to have fun While delivering fast accurate and friendly service. If you are interested

in becoming a part of a McDonald's Team, here are some of the duties that could be required of you.:

1. On Time, Neat and Clean: Our crewmembers are expected to report work on time, neat and clean.

2. Wash Your Hands: the most important thing crewmembers so to help make sure our customers

receive safe food is to wash their hands often.

3. Skills and Training: Training will provide you with the skills you will need to perform your job.

4. Standards: Crewmembers follow standard operational procedures so customers always receive

exceptional quality & service.

5. Teamwork: Our crewmembers rely on teamwork and high energy to get the job done.

6. Clean' Spotless... Tidy... sparking. Our customers expect every McDonald's will be clean.


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7. Welcomed Guest: Our crewmembers make each customer feel like a welcomed guest.

8. Service: We depend on our crewmembers to deliver fast, accurate and friendly service with a smile.

Education

McDonald's is committed to the education of our youth. We all take this leadership role very seriously

and work in partnership with parents and educators to ensure that our school-age employees see

education and schoolwork as their top priorities. McDonald's Corporation and McDonala's

Owner/Operators are similarly committed to ensuring that the McDonald's job experience complements

and supports employees' educational goals. Our efforts are defined by the following principles:

education always comes first, employment supports education, schoolwork balance and

opportunity/careers at McDonald's.

Benefits

Competitive Wages

MAC Card


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Haircut Discounts

Wages increases

McDonald's Training Programs

Life insurance

Education Support

McDiect Shares

Uniforms

Flexible Hours

Paid Vacation

Bonus Scheme

Stock Purchase Plan

Comparison between US McDonald's and China McDonald's


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Everyone has to eat to live. However, more and more eating fast has become a away of life. People in

the United States have eaten fast food for many years. This habit is moving to other countries as well, of

course, including China . When McDonald's enter China market, for the fear of lagging behind and to

satisfy with the curiosity, everyone goes to have a try what the taste of Big Mao is. After tasting it, you

will know why it is so popular. Because they have critical quality control inspection, guaranteeing

sanitation and quality. And also their success mainly depends on their advanced management not the

food itself. Most people are satisfied with the quality of the food Which McDonald's Produces. However,

the management of China McDonald's is slightly inferior by comparison. The McDonald's management

in China is quite so young-just few years. Take training for example, entry-level workers are first taken

through the basic Crew Training System. Each stage of advancement beyond the crew level then entails

a new training program, with the skills becoming more complex and generalized. Each restaurant has its

own video player and training room. Step-by-step manuals and video tapes cover every detail of the

operation, everything from how to make a Big Mao to a shake. Trainers use a series of checklists as new

crewmembers move through the restaurant. A level of competency is demonstrated and the activity is

checked off on the SOC. Furthermore, if you are promoted to be a manager, you have chance to go to

hamburger University . However, in China , there is not any Hamburger University for crewmembers or

managers to enter. Here the crewmembers just taught easily on how to do the procedure, not a

complete training program. That means it is not a professional program. China McDonald's are just

aware of the quantity not the quality. Another concern is that at China McDonald's, a job is just a job,

perhaps half of them think that working in McDonald's just for the money, just few of them think that

working at McDonald's restaurant provided them with a wealth of experience and skills. But I think that

the benefit is important as same as training. Because good benefits can keep the employee working for

McDonald's and making progress. There are some benefits the china McDonald's employees don't have,

such as educational assistance. China McDonald's don't Provide any program or scholarship for

employee; profit sharing is strange for China McDonald's employees, I think the Chinese employees just

only have their own initial salad and life insurance and perhaps paid vacation; perhaps employees don't

know much about the stock options for eligible employees and stock purchase plan.

Suggestions


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That's the problem for China McDonald's. However, these big differences owing to our different

cultures, customs and complicated background. The orient people have different thinking from the

westerners. By saying that the emphasis I mean not the different thinking itself but their advanced

management, for having probed the key to success, We could find Out that both soft and hardenvironment account for their achievement. And that deserves our pondering and reference in

managing fast food market our own. And how we improve this incomplete system. For the aspect of

training, we can introduce some video tapes and programs, learn from the Unit6d States McDonald's

how they train employees, how they educate their employees. Mealtime china McDonald's should

encourage employees receive more courses which are suitable for them to study. As the benefits,

McDonald's should increase the employees' wages and let the employees enjoy more wealth of

benefits, including bonus, education supports, profit sharing, stock purchasing and so on. These actions

will encourage the motivation from employees and increase the efficiency of completely utilizing the

human resource so that improve the outstanding achievement.

Human Resource Management at Mc Donalds 1

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