QUEZON CITY UNIVERSITY

Human Resources Management

A Performance Appraisal & Feedback Case Study of Mcdonald’s

Presented to Faculty of Quezon City University
San Bartolome, Quezon City
2nd Semester, Academic Year: 2020-2021

In Partial Fulfillment of the Requirements for Human Resources

Management

Prepared By: Group 3 BS Entrepreneurship-2D

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Members:

Dela Pena, Joana Marie

Domingo, Vanylou
Espenida, Leah Mae
Gamara, Norilyn
Hernandez, Donna
Losing, Arhiza Keyya
Loto, Justine Ann
Lozada, Ma. Chenny
Luna, Raymond
Maaghup, Vallery

Dr. Roberto M. Doctor Jr.

July 11, 2021

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I. Introduction

HR management’s performance management systems practice is one of the

functions that align with the organizational strategies and goals. It is a process that is
directed to maximize its employee’s productivity in an organization. Its continuous
process of planning, developing, performing, assessing and reviewing is crucial for
linked and integrated organizational effectiveness. Applying strategic management is a
practice that involves improving and quantifying the value of the workforce. Whereas
engagement and collaboration make the workforce an intrinsic value that could be given
between incentives and performance of employees.

Assessing the performance of the organization that functions with the performance,
training and appraisal play a remarkable role that the effort being orchestrated by the
people lies in the achievement of effectiveness in an organization. Performance appraisal
relies on the evaluation and review of the performance of an individual or team. These
were directed being critical to success that gave emphasis to the significance of vision,
mission, goals and objectives of firms. Activities that measure the performance through
feedback and evaluations to emphasize in terms of identifying and development to make
the most possible strategic decisions. It enhanced employees’ performance to discover
potentials and recognize its relative strengths and weaknesses in urgency on management
developments.

This study aims to identify and analyze the use of information obtained on McDonald’s
Quezon City’s selected firm in the topic of HR Performance Appraisal. Primarily
focusing on the employee’s feedback. To pinpoint its dissemination of feedback within
the organization about experiences and makes its employee stay within an organization.
Certain criteria are distinct to elaborate in the insignificance of developing firms
management. To be able to achieve its criteria, we conduct a survey instrument on the
employees of McDonald’s’ particularly as our fellow members who are also members of
its organization along with the usage of data based on the employees’ responses.

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II. Background

McDonald’s (or McDonald’s Corporation) is the world’s largest fast-food

restaurant chain. Burgers, cheeseburgers, chicken, french fries, soft drinks, milkshakes,
and other desserts are among the menu items. The first McDonald’s restaurant was
opened by brothers Richard and Maurice McDonald. Their father held a food stand in
Monrovia, California called “The Airdrome”, where he sold cheap hamburgers and
orange juice. In 1940, the brothers moved the restaurant to San Bernardino, California
and called it “McDonald’s Bar-B-Q” where they sold mostly barbeque. When they
realized that most of their profits came from hamburgers they streamlined the making of
hamburgers and started selling a smaller menu with just hamburgers, cheeseburgers,
french fries, shakes, soft drinks, and apple pie. They also shortened their name to
“McDonald’s,” and reopened on December 12, 1948.

McDonald’s corp. is currently one of the most successful consumer products companies
in the world with annual revenues exceeding $23 million and has more than 1.6 million
employees. McDonald’s products are recognized and are most respected all around the
globe. Currently, its divisions operate all over the world in beverages, snack foods, and
restaurants.

The corporation's increasing success has been based on high standards of performance,
marketing strategies, competitiveness, determination, commitment, and the personal and
professional integrity of their people, products and business practices. McDonald’s
believes their success depends upon the quality and value of their products by providing
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a safe, wholesome, economically efficient and healthy environment for their customers;
and by providing a fair return to their investors while maintaining the highest standards
of integrity

McDonald's Corporation is a "Centralized, International company," with over 30,450

fast-food restaurants in 121 countries worldwide. There are 2,770 company-owned
locations and 35,085 franchised locations, with 21,685 locations franchised to
conventional franchisees, 7,225 locations licensed to developmental licensees, and a total
of 2,770 company-owned locations and 35,085 franchised locations.

Their Core Values;

We place the customer experience at the core of all we do
Our customers are the reason for our existence. We demonstrate our appreciation by
providing them with high-quality food and superior service, in a clean, welcoming
environment, at a great value. Our goal is outstanding QSC&V for each customer every
time.

We are committed to our people

We provide opportunities, recognize talent, and develop leaders. We believe that a
diverse team of well-trained individuals working together in an environment that fosters
respect and drives high levels of engagement is essential to our continued success.

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We believe in the McDonald’s® System

Owning a McDonald’s business model, depicted by the “three-legged stool” of
owner/operators, suppliers, and company employees, is our foundation, and the balance
of interests among the three groups is key.

We operate our business ethically

Sound ethics is good business. At McDonald’s, we hold ourselves and conduct our
business to the highest possible standards of fairness, honesty and integrity. We are
individually accountable and collectively responsible.

We give back to our communities

We take seriously the responsibilities that come with being a leader. We help our
customers build better communities, support RMHC, and leverage our size, scope and
resources to help make the world a better place. We are committed to sustainable
business practices and are determined to conduct our operations in a manner that does
not compromise the ability of future generations to meet their needs.

We grow our business profitably

Our stakeholders support our ability to serve our customers. In return, we work to
provide sustained, profitable growth for all members of our system and our investors.

Structure of McDonald’s and how each department in the organization interacts

and work together

The chief executive officer (CEO) is at the top of the McDonald's company
structure, followed by the chief operating officer (COO), the chief people officer (CPO),
the chief financial officer (CFO), and the SVP growth. Corporate affairs, marketing,
human resources, national operations, regional managers, finance, information, and
strategic planning are the departments that follow. Legal, customer service, franchising,
safety, security, and licensing, property and development, supply chain, and restaurant
services are some of McDonald's other functional divisions.

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III. Recruitment and Selection in McDonald’s

McDonald’s is the world’s largest and fastest-growing global restaurant chain. It

uses recruitment and training policies with practices that attract, identify, develop and
retain high-quality staff. It seeks at how McDonald’s recruits, trains and has high-quality
employees. The company says it aims to recruit, train and retain top-quality staff. The
quality of its products ultimately determines any company’s reputation. To invent,
design, produce and distribute high-quality items, you’ll need high-quality personnel. As
a result, a company’s reputation depends on its ability to acquire high-quality people.
The capacity to recruit, train, and retain high-quality employees is significant for any
organization that provides a high level of personal service. This Case Study examines
how McDonald’s, the world’s largest and fastest-growing worldwide restaurant chain,
employs policies and practices to attract, discover, develop, and retain the high-quality
employees that its line of business necessitates. The manager evaluates the candidate’s
customer service and skills and then reflects against what they are looking for in a
candidate. And then, after that, the candidate will have an interview with the business
manager. Recruitment and selection process.

The company has considered three types of the application process for the candidates to
ensure that they are suitable for the job. The first round of the interview is done online,
through which candidates have to go through various questions with a Human Resource
officer. Then, interview with HR wherein the candidate takes a job evaluation for the
manager. It is for two purposes; one is to assess the candidate’s capability. Another one
is to allow the candidate to access the working environment that suits their working style.
The job Evaluation process takes 15 minutes. The candidate conducts the activities by
considering the problem-facing areas—also, complete instructions to analyze the actual
capacity (Chaneta, 2014).

The interview with the business managers; takes approximately 30 minutes to study the
working degree of the candidate. At the time of selection, the appearance, experience,
computer skills, leadership skills, communication skills, and professional qualifications
to consider (Vickers, McDonald and Grimes, 2014). The final selection process starts as
follows: The first step is initial screening, and then the written test is conducted, initial
interview, aptitude test, reference check, final interview, and the last step is relocation.
The primary step in the selection process is a written test from which the candidate’s
knowledge and capability to analyze correctly (Breaugh, 2017).

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Strategies and Plans

Planning
It also gave a clear idea about the number of candidates and the type of candidates
applying for the job. An essential aspect of the strategy is attracting more persons than
the organization needed to choose the best applicant and attracting candidates similar to
the advertisement.

Strategic Planning
McDonald’s focuses on strategic development after determining how many
workers are necessary and what qualifications are required. Various businesses have
different perspectives on strategic development. The first decision to make in strategic
development is hiring someone with prior experience or someone with new expertise,
and It will explain why. After deciding the employee’s eligibility, the organizations look
at different mediums to advertise the job and which labor market they want to target.

Considering there is little discussion in the literature on the selection criteria, the
companies have been recruiting for various positions. Hence, selection criteria are
entirely dependent on the vacancies. Instead, the scholars (i.e., Richardson) focus on the
recruitment strategies generally divided into internal and external recruitment strategies.
Internal recruitment refers to the recruitment within a company (a promotion of existing
personnel or hiring through a recommendation of a friend or family member by existing
staff). The main advantage of internal recruitment is that the insiders know the
company’s strengths and limitations, its employees, and culture. The internal promotion
also strengthens the employees’ commitment to the company.

On the other hand, it is sometimes difficult to locate the ideal applicant for a particular
post. As a result, the position may offer to someone who does not have the most
satisfactory qualifications. Aside from that, the organization may not have enough
skilled employees to fill newly generated positions. As a result, it may result in the
advancement of those who have not received comprehensive training and lack solid
understanding. External recruitment, on the other hand, covers both informal and formal
approaches.

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Formal methods concern wide searches at the labor market for the candidates with no
previous connection to the company. Informal methods regard searching the company’s
database for the retained resumes (i.e., rehiring former employees, hiring students who
took internships programmed within a company). The latter method is faster and
inexpensive compared to external methods (Richardson, 2000).

Internal recruitment involves employing people from within an organization (promoting

existing personnel or hiring through a recommendation of a friend or family member by
existing staff). The key benefit of internal recruitment is that insiders are familiar with
the company's strengths and weaknesses and its personnel and culture. The internal
advancement also strengthens the employees’ devotion to the organization.

Discussions
Recruitment and selection are the keys to achieving a competitive advantage for a
company like McDonald’s. McDonald’s believes that the success of the restaurants and
the company gained through their people. The company aims to recruit the best people to
retain them by offering ongoing training relevant to their position and promoting them
when they are ready. The recruitment policies, procedures, and practices reflect the
company’s determination to realize its aim. Better recruitment and selection strategies
result in improved organizational outcomes.

The more effectively organizations recruit and select candidates, the more likely they are
to employ and retain satisfied employees. McDonald’s has released a new commercial
emphasizing the company’s opportunities for advancement. And it was more selective
about its hires. They require applicants to take a test designed to measure their
experience and behavior patterns. Every branch of McDonald’s is independent in hiring
its employees.

A typical McDonald’s can employ about 60 people who include both managerial and
floor-based staff. McDonald’s benefits from college recruitment (internships) because
they don’t have to pay them much because the position is just temporary. Like most
firms today, McDonald’s requires all applicants for parts subject to a criminal
background check before being hired. An ideal candidate will have exhibited abilities
and behaviors to regard as desirable; the importance of the role is not to overstate. On-
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the-job training and open learning development modules, as well as courses, are included
at the Company’s National and Regional Training Centers, as well as seminars.
McDonald’s believes that the success of the restaurants is down to the people that work
there.

Recruitment and Selection at McDonald's McDonald's are hiring.

McDonald's is one of the world's largest family restaurant chains, with the mission of
providing the most satisfactory family dining experience possible. McDonald's achieves
this by putting people at the center of everything they do, including staff and consumers.
McDonald's understands that individuals perform better at work when they enjoy what
they do; therefore, it can do everything to ensure that everyone has a positive working
environment. McDonald's is looking for professionals that are passionate about
providing excellent service. To guarantee that the proper people hire, the organization
has established fundamental abilities and behaviors that applicants should exhibit.

A job description outlines typical activities and responsibilities for each position and a
person specification that defines personal skills and competencies. According to
McDonald's policy, each location is responsible for filling hourly-paid employment.
McDonald's employs a variety of methods to recruit hourly workers. In cases, job
openings will publicize it—in the restaurant. McDonald's also makes use of local job
centers, career fairs, and other resources. It's critical to employ effective hiring materials
that provide a clear message to the right people.

McDonald's menu options vary depending on the job you want to undertake for the
corporation. Suppose you’re going to work as a trainee manager, for example. In that
case, the process takes four to eight weeks and consists of four steps; 1) Fill up an online
application 2) Personality assessment 3) On-the-job assessment (OJE) 4) In-depth
interviews. Personal information, two references, educational history, and short answers
(no more than 500 words) to six competency questions on the online form. What about
Restaurant Management appeals to you, traits that make you a good fit for the job and
previous employment?

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The personality questionnaire is the second step, in which candidates request to complete
a personality test to assess their values and suitability for the position. It focuses mainly
on leadership abilities and the capacity to work well with others. The “on-the-job
evaluation (OJE)” is the third step. It's a one-day test in which candidates do a variety of
activities on the shop floor.

For the first part of the program, candidates work as part of a restaurant crew, learning
about customer service, cash management, equipment maintenance, food cleanliness, and
health and safety.

Later on, candidates will learn how to handle complaints and manage shifts. Candidates
undergo monitoring as they participate in a series of group exercises aimed at resolving
various issues. Finally, an interview with an operations manager is the fourth step. These
could include information about your schooling and professional experience, as well as
your motivation to join the organization and basic skills. Candidates will also have the
opportunity to ask questions regarding the work and their future potential. After the
assessment procedures complete, the organization typically approaches candidates about
job offers within ten days.

IV. Training and Development of McDonald’s

Training and development refer to firms' formal, continuing attempts to improve

their employees' performance and self-fulfillment through various educational
approaches and initiatives. These efforts have a wide range of applications in the modern
workplace, ranging from teaching particular typical techniques to specific job skills to
long-term professional development. In recent years, training and development have
become a recognized profession with distinct theories and approaches and a formal
company function, and an integral component of the strategy. As a means of supporting
employee growth and gaining a highly qualified workforce, an increasing number of
firms of all sizes have adopted "continual learning" and other training and development
components. Employee quality and the continuous enhancement of their skills and

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productivity through training are now widely recognized as critical components in

assuring small firms' long-term success and profitability.

The terms ``training" and "development" are used interchangeably to describe an

organization's general improvement and education of its employees. While the phrases
are similar, there are fundamental distinctions between them that revolve around the
scope of the application. In general, training programs have extremely definite and
verifiable objectives, such as operating a particular piece of machinery, knowing a
specific process, or completing precise procedures. On the other hand, developmental
programs focus on broad abilities that can apply in several contexts, such as decision-
making, leadership, and goal-setting.

Training and Development

According to the study, just like every company, McDonald’s provides induction
training, also known as orientation, offered at the start of an employee's job in an
induction organization. It informs employees about every part of the job and its nature.
Employees also reported on corporate policies, as well as the company's goals and
objectives. Induction is significant because it includes health and safety training. The
second type of training is on-the-job training, in which employees receive instruction
while working at their respective stations. It teaches employees new abilities that enable
them to perform well at various stations. Management training is the third type of
training, in which exceptional trainees teach employees how to manage themselves and
those around them.

The current organization of McDonald’s places a strong emphasis on quality for

restaurants to provide the best possible customer service. Only by soliciting feedback
from both customers and employees can an organization provide the best possible
service. Feedback is critical for an organization's quality, as it reveals what customers
think of the company's present offerings. Employee feedback is also highly significant
when it comes to performance reviews. We believe that proper and current training and
feedback from customers and staff can assist a business in achieving its objectives.

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Hiring Process
According to the study, it is easy to get employed as a service crew member at
McDonald's because they frequently hold job fairs to find potential employees due to a
staffing shortage. McDonald's employs many people due to a busy daily operation and
usually hires part-timers with or without experience. On the other hand, submission of
applications online, or you can visit a McDonald’s branch of your choice and for
application or if they are hiring. The HR Manager or staff will call you for an interview,
and you are to take a 20-30 item personality test.

Orientation
After being informed that the applicant was fit for the position and scheduled to attend
the orientation comprises the following; the history, rules, and regulations of
McDonald’s. Necessary to report for work to become an official employee of the
company because you will sign a contract right after the orientation.

Employee Placement
McDonald’s is very much precise when assigning jobs to each of the selected applicants.
They consider the employee’s location to their near respective places. It is one way to
avoid tardiness and absenteeism because a reasonable employee placement could benefit
both the employee and the company itself.

Appraisal
Employees have a performance assessment based on the competencies whereas critical
for identifying the respective position. The evaluation takes place twice a year and
provides an opportunity to assess results, set goals, and evaluate the employee's training
and development requirements. The review's parts are in line with our overall company
plan and each individual's job description. Each section allows the reviewer to rate an
employee's performance using written comments and numerical ratings on a scale of 1 to
4. The employee is permitted to grade themselves and provide feedback on how they
rank themselves in each segment.

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V. Basic Pay and Incentives

How much does a Service Crew at McDonald's make?

The typical McDonald's Service Crew salary is PHP 46 per hour. Service Crew salaries
at McDonald's can range from PHP 14 - PHP 86 per hour. These estimates upon 47
McDonald's Service Crew salary report(s) provided by employees or estimated based
upon statistical methods. When factoring in bonuses and additional compensation, a
Service Crew at McDonald's can expect to make an average total pay of PHP 46 per
hour. Average McDonald's Service Crew monthly pay in the Philippines is
approximately Php 10,053.00, 23% below the national average.

Salary information comes from 14 data points collected directly from employees, users,
and past and present job advertisements on Indeed in the past 36 months. Please note that
all salary figures are approximations based upon third-party submissions to Indeed.
These figures intend for users for generalized comparison only. Minimum wage may
differ by jurisdiction; employees should consult the employer for actual salary figures.

Employee Benefits
McDonald's Corporation provides perks for their workers. Like McDonald's Corporation
workers, numerous employees take advantage of group health coverage sponsored by
their employer, through which employers typically pay a significant proportion of their
workers' health insurance premiums. Companies require tax deductions for their
contributions in this system, and employees have the insurance tax-free. McDonald's
Corporation offers health, dental, and vision benefits. McDonald's Corporation also
provides short-term disability insurance for accidents or illness, death benefits, which
cover specific causes of death, group life insurance, and long-term disability insurance.

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Benefits Summary

✔ Health & Insurance Benefits

✔ Health Insurance
✔ Temporary Disability Insurance
✔ Accidental Death & Dismemberment Insurance
✔ Severance Pay
✔ Life Insurance
✔ Long-term Disability Insurance

Your Health and Protection

Protecting you and your family's health and financial future is essential. That's why we
offer the following plans:

Medical
McDonald’s offers three Preferred Provider Organization (PPO) medical plan options
that use the First Health network of providers. The plans have different benefit levels and
pay more for in-network covered costs than for out-of-network covered expenses. All
three of the methods feature a prescription drug program and an unlimited lifetime
benefit maximum. In addition, the McDonald's medical plans cover preventive care,
including annual physical exams for employees and covered family members, well-baby
care, and child immunizations and vaccinations. In some areas, HMOs are also available.

Vision Supplement
Employees enrolled in one of the four McDonald's medical plans may elect the vision
supplement plan, which provides coverage for eyeglasses and contact lenses, plus a mail-
order contact lens replacement program, and discounts on Lasik laser vision correction
surgery.

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Dental
Our dental plan allows employees to see the dentist of their choice and covers a wide
range of dental services. Preventive services, including sealants for children, are covered
at 90% with no deductible. Basic and primary services cover at 80% after a deductible.
The plan also covers 50% of eligible orthodontia expenses for adults and children after a
one-time deductible.

Short and long-term disability

Both short and long-term disability coverage at no cost to employees. Short-term
disability benefits if an employee cannot work for more than ten consecutive days; how
long benefits continue depends on the nature of the employee's disability and years of
service. Long-term disability coverage replaces 60% of the employee's monthly base
salary while they are disabled.

Employee and dependent life insurance

McDonald's provides basic life insurance of two times the employee's base salary at no
cost to the employee. In addition, employees can purchase additional life insurance
coverage for themselves (either term or universal life)—basic dependent life insurance
for their spouse or domestic partner and children provides no cost to the employees. And,
if an employee elects optional life insurance for themselves, they can purchase additional
dependent life insurance coverage.

Accidental death and dismemberment insurance

AD&D covers employees if either they die or are injured in an accident. McDonald's
provides AD&D coverage equal to two times the employee's base salary. If the employee
elects additional life insurance coverage, they automatically have an equal amount of
optional AD&D coverage at no extra cost.

Travel and business travel accident insurance

McDonald's provides travel accident coverage of two times an employee's base salary at
no cost to employees. Travel accident insurance pays benefits in the event of an accident
when traveling for either business or personal reasons. McDonald's also provides
business travel -accident insurance coverage for employees traveling on company
business, also at no cost.
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Your Pay and Rewards

Our pay and rewards program follows a "pay for performance" philosophy: The better
your results, the greater your pay opportunities.

Base Pay
Because employees' base pay is the most significant portion of their compensation,
McDonald's maintains the competitiveness of our base pay through an annual review of
both external market data and internal peer data. In our corporate, division, and region
offices, McDonald's has a broadband compensation system. Broadbanding allows for
flexibility in terms of pay, movement, and growth.

Incentive Pay
Incentive pay provides our employees with the opportunity to earn total competitive
compensation when performance meets and exceeds goals. For our corporate, division,
and region offices, the Target Incentive Plan (TIP) links employee performance with the
performance of the business they support. TIP pays a bonus on top of employees' base
salaries based on business performance and their performance.

Long Term Incentives

Long-term incentives are granted to eligible employees to reward and retain key
employees who have shown sustained performance and can impact long-term value
creation at McDonald's.

Recognition Programs
The recognition program relays to reward and recognize strong performers. For our
corporate, division, and region of significance, these include the Presidents' Award
(given to the top 1% of individual performers worldwide) and the Circle of Excellence
Award (given to top teams worldwide to recognize their contributions to advancing our
vision).

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Investing in Your Future

Taking care of your current and future financial needs can be challenging. That's why we
offer the following savings and money management programs:

Credit Union
All McDonald's employees can take advantage of a full range of services available
through the Corporate America Family Credit Union.

VI. Performance and Evaluation

The McDonald’s performance review based its employees’ competencies on the

company’s overall performance. It allows giving an equitable and fair judgment in
having an evaluation. This activity helps the company be effective and crucial for the
improvement of performances within an organization. Having to align with its company
objectives and goals appropriate which action should partake for its development. A
process of systematic approach allows for its success and continues for the long run.

A performance review is a formal assessment in which a manager evaluates an

employee’s work performance, identifies strengths and weaknesses, offers feedback, and
sets goals for future performance. Performance reviews are also called performance
appraisals or performance evaluations. In the past, many organizations conducted annual
performance reviews for their entire workforce; however, more and more companies are
moving toward a frequent feedback performance management system in which managers
operate quarterly, monthly, or even weekly reviews. Some organizations are doing away
with formal performance reviews, procedures, manager check-ins, and one-on-ones.

Appraisal systems of its organizations used 360-degree feedback on its operation. It is an

approach wherein input on a group or an individual takes from all the possible sides
(Ahmed, 2021). Primarily used a confidential employee evaluation with its co-workers
by using rating instruments by its competencies covered. Allows in emphasizing the

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strengths and weaknesses using the feedback results for the development plan. It is hail
by the line managers to use this approach for evaluating its employees.

Employees receive a performance review based on competencies defined as necessary

for their role. The thought occurs twice a year and is an opportunity to measure
performance, set objectives, and discuss the training and development needs of the
employee. Communication reviews aligned with overall company strategy and each
individual's job description. Each unit has the opportunity for the reviewer to rate an
employee's performance through both written comment and numerical rating on a scale
of 1 - 4. The employee has the opportunity to grade themselves and make comments on
how they rate themselves within each section.

Another advantage of using this feedback process is employee engagement with peers. It
is developing an environment that minimizes formality in a working environment. The
practical approaches that McDonald’s uses. It is a highly regarded environment that
helps the employee’s motivation and morale. Thus, it can work efficiently and
effectively on its day-to-day business operations and its organizational performance.

As the performance evaluation occurs, company culture is the driver. The most
significant assets are the employees and staff, which play a crucial role in keeping its
people inspired and motivated. Mcdonald’s has a reward system as they emphasize the
growth of its human resource. To develop and implement the company culture
environment potentially for overall development. McDonald’s also incentivizes and
supports desired behaviors through bonuses, awards, and recognition (Crawford,2015).
A company adopts a culture where people will effectively feel motivated and opportunity
to increase work engagement.

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Mcdonald’s Employee Reviews in Quezon City

PRODUCTIVE AND SHOWING TEAMWORK. EVERY DAY IS A DIFFERENT

DAY
Service Crew (Former Employee) - Quezon City- October 26, 2020
“Mcdonalds taught me many things from being patient, hardworking and having care
for others. They also taught me to be responsible from going to work on time, do my
station without complaint from a customer and leave my station with turn over.’’

PRODUCTIVE EVERYDAY IN A WORKPLACE

Crew - Quezon City - June 17, 2020

“Every day there are a lot of customers going in and out. It sometimes brings happiness
to us crews because of some customers who have a good little attitude toward us. The
hardest part of the job is when we know each other's categories of being crew in
Mcdonald’s but it is sometimes helpful because you will learn a lot. The most enjoyable
part of the job is when someone appreciates your hard work.”

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TERRIBLE MANAGEMENT
Service Crew (Former Employee) - Quezon City - February 18, 2020
The job itself is nice, but the work environment is very toxic. Sometimes you work almost
more than 8 hour-shift but you only get paid for 6 hours and call the rest of your
overtime "malasakit". It seems like leaving work on time is a crime. Managers have poor
managerial skills and they give you a job for 2 persons to decrease labor.’’

STRESSFUL
Cashier/Service Crew (Former Employee) - Quezon City - December 9, 2019
“I’m not happy with the salary, also the management, especially the attitude of some
crews and also the manager, but I have so much to learn from my work if you want you
can do it.”

According to the Mcdonald’s Employees, they expect to give their 100% work and effort
to fulfill their duty in store. Although they had a probation period before they regularly
worked, they received good and bad comments and advice from their manager to
develop their work and skills in the adjustment process. But now, they’re already
improving and familiarizing themselves with emphasizing the proper action to give fast
and satisfactory service to their customers in a standard way. Before going to the specific
station, the manager always gives them a briefing to remind them of food safety and
encourages them to give their best work.

Mcdonald’s Manager evaluates the crew, and each division handles a specific
operational area or set of strategic objectives. It has an on-floor Manager on ‘MIC’ and
(Manager in charge) who responded to the all overactivity in store and ‘CM’ Cashier
Manager strictly assist and support the counter side of stores who take and talk to the
customer. It is vital to receive emphasized feedback to improve and develop their work.

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VII. Labor Relations

Several factors influence the efficacy of an organization’s performance management

system, but three are particularly significant. First and foremost, the system must be in
sync with and support the organization's goals and essential success criteria. Second, to
make the system user-friendly and well-received by organizational members, well-
developed, effectively operated tools and processes are required. The third and most
essential need is that both managers and workers use the system to produce tangible,
value-added advantages in performance planning, development, feedback, and goals.

The behavioral expectation is one of the communications between essential factors to

consider when developing a purpose for consumers or workers. Managers must ensure
that workers understand how the behavioral standards apply to their occupations.

Employee Relation of McDonald'sEmployee Relation is vital for a company to be

sustainable and continuously improving. According to Business Dictionary, employee
relations is communication between management and employees through workplace
decisions, grievances, conflicts, problem-solution, unions, and collective bargaining;
employee relations in an organization ensure employee productivity, employee loyalty,
and conflict reduction. Having strong employee relations is essential for the success of
the business. Strong employee relations help to boost employee productivity, higher
efficiency, and lesser conflict and further develop employee loyalty. It shows the
importance of employee relations within a company in the number of vast issues related
to it. In this assignment, a company that is selected to be studied is the famous fast-food
franchise McDonald's. McDonald’s, or in whole known as McDonald’s Corporation, one
of the largest American fast-food chains, and it is well known for its hamburgers. Its
place in Oak Brook, Illinois.
McDonald's was started in 1955 by Raymond Albert Kroc; an exclusive distributor of a
milkshake maker called the Multimixer acquired the franchising rights from two brothers,
Richard and Maurice McDonald. These brothers ran a hamburger restaurant in San
Bernardino, California, in the 1950s and opened his first restaurant in Des Plaines,
Illinois. In 1961, he officially owned McDonald’s after he bought out these brothers. Fast
forward to today, McDonald’s runs its business around 119 countries around the world

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with more than 33,000 restaurants. According to Fortune 500 (2018), McDonald’s now
ranks at 131 among the world’s top 500 companies.

VIII. Findings and Conclusion

As a final observation, McDonald’s focuses on developing human resources by
emphasizing the working environment and experience, resulting in a great customer
experience. Employee development is essential to improve customer services. Successful
implementation of strategic points plays a crucial role in improving the welfare of
employees and being able to effectively and efficiently perform functions within an
organization. Human resources become strategic in terms of the overall development of
firms through carefully planning and implement methods that could potentially change a
better way of management. Also, as the firm tends to prioritize employee engagement
could indeed disseminate action aligned to the organization’s vision, mission, goals, and
objectives.

McDonald’s strategy stresses the quality of human resources, training, motivation, and
growth as a competitive advantage. As a result, people who ensure product quality. A
component of the approach is the local recruiting policy. Formulating and carrying out
Its goal is to improve McDonald’s. A sense of devotion and allegiance to the community
The following are examples of global policies and practices: Recruiting procedures
Focused on locals; focus on quality, cleanliness, and client service Satisfaction; outlet
design; recruitment rules in HRM Training, performance evaluations, promotions, and
service termination equal opportunities for men and women; advertising policies;
product design and production systems and procedures.

The importance of planning requires an effective direction of the enterprise, which is the
role of HRM in building the organization’s capabilities and competitive advantage.
Social responsibility is achieving marketing objectives on creating a positive perception
in work in places such as restaurants. The work offered by McDonald's may have some
positive elements, but workers are often choosing employment at McDonald's in the
context of having few other attractive options. Almost regardless of what people think of
the work itself, working at McDonald's could offer advantages for some employees who
want flexible hours and reengaged in other activities and responsibilities. McDonald's
provides much-needed work to marginalized workers in the labor market who have few
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chances of a job elsewhere.The function of training audit in institutionalizing teamwork;

the value of employees' skills and capacities. Strict adherence to standards and rules to
institutionalize the management practices you want to see.

The steps and activities of performance appraisal and feedback (significant components)
in the Mcdonalds help their organizations are more effective and one of the well-known
fast food that everyone enjoys. As the organization continues to grow, it can better
implement the strategic components within the organization.

HR has a simple goal that the firm may benefit from when it comes to strategy, develops
its purpose. Finally, when it comes to customer satisfaction, McDonald's has a solid track
record. According to studies, every employee has a set of benefits that can assist them. It
provides an organization’s advantages in that employees will perform at their best,
resulting in a high level of productivity.

- McDonald's offers an extensive training program that includes Hamburger University,

which provides a comprehensive management education in 28 languages.
- Before employees or new hires go to their assigned stations, McDonald's provides a
briefing.
- McDonald's creates opportunities for students who wish to gain experience while also
allowing them to work flexible hours that do not interfere with their academic priorities.
- Employees at McDonald's have access to various benefits, including health insurance,
dental insurance, Occupational Accident and Life Insurance, Maternal and Parental
Leave, and more.

The last half of the twentieth century witnessed the development of many fast-food
chains. None were as successful as McDonald’s at maximizing profit and minimizing
cost. The rapid growth of McDonald’s becomes its shareholders at its best. Business
practices of McDonald’s are, to put it kindly, slightly suspect. Keeping employee wages
low and refraining from hiring full-time workers could save money on health care
packages and employee benefits.

The company has implemented its excellence strategy well. The Company has also
identified its people practices and approaches that substantially impact its turnover,
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productivity, customer satisfaction. It has allowed it to develop a business model that

emphasizes financial and operational factors and people factors that improve its results
by improving employee commitment and retention. Because its business strategy relies
on providing customers quality, cleanliness, quick service, and value, McDonald's work
hard at hiring people who want to excel in delivering outstanding service. Many of its
employees are teenagers, and McDonald's is their first employer. The company tries to
recruit and hire the best people, retain them by offering them ongoing training. To ensure
that it is recruiting the right people, the company identified essential skills and behaviors
that it looks for in applicants. McDonald's has found that hiring people quality crew
members is to advertise inside the restaurant and attract local people or friends of
existing employees. McDonald’s also recruits at local job centers and career fairs, using
hiring material with clear messages targeted at its intended audience.

The researcher discovered that some branches have a particularly toxic environment for
working for 8 hours and 2 hours of overtime, referred to as "malasakit," with just 6 hours
of pay. They make an employee feel like it's a crime to leave on time, and they give a
person a job done by two people merely to cut down on labor. As a result of poor
management, McDonald's basic pay is 23 percent below the national ware age in the
Philippines.

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IX. Recommendations

Strategic human resource management is a forward-thinking approach to

developing and implementing programs that address and solve business challenges
while also contributing directly to primary long-term company goals. An organization
achieves competitive advantage by successfully utilizing its people, leveraging their
skills and advancement to attain specific objectives. SHRM's goal is to ensure that its
culture, style, structure, and the quality, commitment, and motivation of its employees
contribute to achieving business goals.

McDonald’s has remarkably remained in the market by effectively managing an

organization’s internal operations. Has an excellent capability in making their human
resources strategic by developing and continuous improvement. Employee engagement
helps to identify concerns through feedbacks and monitoring for the performance of each
employee. Effective management operations with their strategic components conform to
an overall solid foundation of organizational goals and values. Also, strategic
development in making the employees committed and motivated to produce high-quality
customer service.

Based on the findings of the case study regarding Performance Appraisal and Feedback
of McDonald’s', the group make the following recommendations:
- McDonald's HR management should gain a comprehensive awareness of the company's
goals.
- Human Resource Management becomes strategic when assessing its people's strength
or capability in connection to its goals.
- Because McDonald's hires part-timers essentially, a rigorous onboarding and training
program must improve employee retention.

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Human resource planning is concerned with getting the right people, using them ideally,
and training and developing them to achieve McDonald’s goals. To meet McDonald’s
aims and objectives successfully, people using are to identify perfectly and effective
ways and identify any problems that are likely to occur (such as recruiting the best
candidates) and then getting with proper solution. ” Human Resource Planning (HRP) is
the process of ensuring an organization has the correct staff at the right time, with the
right skills and abilities in the right place.”
An employee's basic salary increased because an employee’s basic pay at Mcdonald's in
the Philippines is 23 percent below the national wage. Also, those that undermine other
coworkers, particularly during performance appraisals, should be removed or avoided.
Listen to the employee's comments to come up with a solution and improve their
working environment.

HRM became strategic in their implementation of strategic components through the help
of HR, who recruits qualified people for the job. Hiring new employees is a challenge for
HR to hire someone with prior experience or unique expertise. It is not arbitrary and
must follow a proper recruitment process that may help the organization be consistent.
Strategic components help develop quality staff. Employees will likely feel valued and
want to stay with a company that places a premium on employee engagement.
Understandably, HRM became strategic in their implementation of strategic components
through the way HR work as what they assigned because HR is the one who lets people
work inside the organization. Once they hire, they shall be monitor to know if they
continue to implement the strategic components.

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