Mc Donald

Submitted by pawanlpu on March 24, 2011

 Category: Business and Economics

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CONTENTS
INTRODUCTION
HUMAN RESOURCE ANALYSIS
JOB ANALYSIS
PLANNING AND FORECASTING
RECRUITMENT
SELECTION
TRAINING
DEVELOPMENT
PERFORMANCE APPRAISAL
COMPENSATION
INCENTIVES
BENEFITS
EMPLOYEE RELATIONS
CONCLUSION AND SUGGESTIONS

INTRODUCTION
McDonald’s brand is the leading global foodservice retailer with more than 30,000 local
restaurants serving
almost 50 million people in 120 countries each day.

FOUNDERS:
It’s rich history began with its founder`s vision and their commitment to be peoples' favorite
place and way to
eat with inspired employees who delight each customer with unmatched quality, service,
cleanliness and value
every time. The business was started in1940 by two brothersD IC K and MAC MCDONALD
in San
Bernardino.

VISION STATEMENT
The McDonald’s System leverages the unique talents, strengths and assets of diversity around
the globe in
order to be our customers’ favorite place and way to eat.

M ISSION STATEMENT
McDonald's mission is to be the world's best quick service restaurant experience. Being the
best means providing outstanding quality, service, cleanliness, and value, so that we make
every customer in every restaurant smile.

PRODUCTS AND SERVICES

Macdonald sells the following products in order to provide their customer with good and
hygienic food:

PRODUCTS
Burgers
Chicken sandwiches
French fries
Soft drinks
Desserts
Salads
Breakfast items
Milkshakes
Coffee
SERVICES
McDonalds provides basic two services such as:
Self-Service System
Drive-In through Servi

HUMAN RESOURCE MANAGEMENT IN

MCDONALDS
The human resource department at McDonalds is working as a separate department and holds
an important
place in almost all major operations of the organization but all managers across McDonald's
are given
responsibilities for selecting, motivating, developing and evaluating employees so that they
can have a share in
the organization’s affairs. All managers therefore take on human resource responsibilities.
Employees are the
most important resources in McDonald's, particularly in creating a competitive edge.

FUNCTIONS OF HR IN MCDONALDS
The functions of HRM in McDonald’s are:

POLICY-MAKING - Establishing major policies that cover the place and importance of
people in

McDonald's.
WELFARE - Concerned with looking after people at McDonald's and their needs.


SUPPORTIVE – Co-operative and helping other managers in their work.

BARGAINING AND NEGOTIATING - Acting as an intermediary between different groups

and interests.


ADMINISTRATIVE – Responsible for pay rate system and supervision implementation of

health and safety

laws, etc.

JOB ANALYSIS
McDonalds has many employees who are working on different posts and are working hard
according to their own capacity. McDonalds conducted job analysis in order to hire new
employees at every year that sometimes on quarterly basis. This also enables management to
have a better understanding of the jobs and duties being performed at every level and also
helps them in training the people who are freshly recruited.

JOB ANALYSIS METHOD IN MCDONALDS

In job analysis McDonalds focuses on Work Activities and Human Behaviors of an employee
for a job.

JOBS IN MCDONALDS
McDonalds Pakistan has two types of job openings with their sub openings as listed under
Restaurant Jobs
Office Jobs

RESTAURANT JOBS
In the restaurant jobs, there is a clearly defined career path, from Crew Member to Crew
Leader to Floor
Manager to Assistant Manager to Restaurant Manager. And from there onwards the
opportunities for growth
and development are limitless Area Supervisors, Operations Consultant and beyond are just a
few to mention
from.

TRAINEE MANAGER
This is an entry level managerial position at McDonald's restaurant, providing opportunity to
start and excel the
career with the core business functions. Trainee managers handle various areas of
professional excellence
where sales, people, product safety and security are the minimum areas to be mentioned.

CUSTOMER CARE REPRESENTATIVE

This is an exciting career opportunity for the females, responsible to independently organize
birthday events &
various activities at local store level so that the challenging fun activities of the job will gear
up the
commitment of employees for providing the first class customer services
CREW MEMBER
Crew Members are the core team members always ready to serve the customers on the floor
with a shining
smile unique with the services. This job is offered either as a Delivery Rider or a Crew
Member. So the fun &
enthusiasm prospect apart from extensive learning will make employees a key member of the
team serving our
customers. There are three main areas of responsibility of a crew member:
Customer service
Food preparation
Cleanliness and hygiene

OFFICE JOBS
Managerial jobs are categorized as Office Jobs in McDonalds. At McDonald’s office jobs are
an excellent
match, provided an employee can exhibit the right skill set up to excel in the areas of his/her
expertise.
Depending upon the knowledge, experience and right aptitude, there are 3 key entry points in
the office jobs.

INITIAL ENTRY LEVEL

This entry level is specifically for beginners to start the career in a professional work culture,
these positions
will provide the opportunity to develop the skills as a successful business entrepreneur.

MIDDLE ENTRY LEVEL

As a middle entry level incumbent the incoming employee will perform as a liaison with
team members to
deliver the team objectives while ensuring the execution of assigned tasks as per defined
standards and
procedures.

HIGHER ENTRY LEVEL

The higher entry level job incumbents are accountable for the execution of assigned tactics
and strategic plan. The provision of leadership approach to work will enhance their sense of
ownership and part of the winning team member.

JOB ANALYSIS METHOD IN MCDONALDS

MCDONALDS applies the basic methods of Job analysis by which HRM can determine job
elements and the
essential knowledge, skills and abilities for successful performance methods. MCDONALDS
uses the
following job analysis methods according to their jobs:
Observation Method
Interview Method.
Questionnaire Method.

The CREW MEMBERS are like main workers of the McDonalds because they are the one
who handle the
stage work. McDonalds use directO bs er vation andIn ter viewin g together Firstly, they
observe the work of the
crew member note the information as much as they can and then for further assistance ask the
crewmembers
about the detail of their work. For

CUSTOMER CARE REPRESENTATIVES McDonalds follow the similar Interview

Technique where they
ask the employees that what they feel when they work in this fun environment, how they
manage all the work
and satisfy the kids and their parents.

For the MANAGERIAL JOBS McDonalds use theQues tionnair e and Interview Method.
They prepare a structured Questionnaire in which they ask employees about their jobs,
purpose, education
required for the job, experience or other key factors. Whereas, in Interviewing they further
collect the
information related to job directly from employees.

JOB DESCRIPITION
The job analysis is used to generate a job description, which defines the duties of each task,
and other
responsibilities of the position. The description covers the various task requirements, such as
mental or physical
activities; working conditions and job hazards.

JOB DESCRIPTION AS PER JOBS

McDonalds represent its Job Description as
“Category Profile” and “Individual Competencies”
OFFICE JOBS
For office jobs Job Description is named as “Category Profile”
I . INTIAL ENTRY LEVEL:
Strong focus towards learning and adapting to the corporate environment

A real interest in how people drive business

Positive work attitude with the ability to lead challenging roles & responsibilities

Exposing good confidence level for delivering responsibilities at outstanding level

Innovative approach for initiating change at different levels

Strong communication skills to act as a liaison between stakeholders and team leaders

II . MIDDEL ENTRY LEVEL:
Strong interpersonal and leadership skills.

Effective negotiation & problem solving skills

The ability to see the big picture while delivering organizational goals

RESTAURANT JOBS
For restaurant jobs the Job description is written as “Individual Competencies”

1. TRANIEE MANAGER:
Effective communication skills able to work in a team environment

Proactive to exhibit true managerial capability

Career oriented with focus on continuous learning

Flexibility to adapt to a diversified work culture

Customer orientation with a positive attitude towards provision of quality services


2. CUSTOMER CARE REPRESENTITIVES:

To maintain work standards of Customer care, customer relationship

To strengthen marketing at local store level.

Perform with a strong focus toward customer orientation.

To independently organize and execute various events at store level.

To achieve agreed targets for enhancing Local Store Marketing.


3 . CREW MEMEBERS :
Good communication skills.

Have ability to work at all levels required for crew members

Work efficiently and in organized way.


JOB SPECIFICATION
The job specification describes the person expected to fill a job. It details the knowledge
(both educational and
experiential), qualities, skills and abilities needed to perform the job satisfactorily. The job
specification
provides a standard against what to measure; how well an applicant matches a job opening
and it should be
used as the basis for recruiting.

JOB SPECIFICATIONS AS PER JOB

In McDonalds the Job specification is written under heading known as“Pr ofile” and
“Competency Level”

OFFICE JOBS:
In office jobs it is known as “COMPENTANCY LEVEL”

INITIAL ENTRY LEVEL:

Education: Graduate or Post Graduate degree holders
Experience: No prior experience is required for this entry position
Age: 22 - 28 years maximum
Gender: Male or Female

MIDDLE ENTRY LEVEL:

Education: Post Graduate degree holders with relevant area of specialization
Experience: 3-5 years of experience in the relevant field
Age: 25 - 32 years maximum
Gender: Male or Female

HIGHER ENTRY LEVE L

Education: Specialized degree in the relevant field with professional certification
Experience: 5 years or beyond
Age: 30 - 35 years maximum
Gender: Male or Female
RESTURANT JOBS :

Job Specification is represented by “Profile” in McDonalds.

TRAINEE MANGER
Qualification: Post Graduate Degree in any discipline
Experience: Fresh candidates with no prior experience
Age: 28 years maximum
Gender: Male or Female

CUSTOMER CARE REPERSENTATIVE

Qualification: Graduate Degree in any discipline
Experience: Fresh candidates with no prior experience McDonalds
Age: 24 years maximum
Gender: Females only

CREW M EMBER
Qualification: Intermediate
Experience: Fresh candidates
Age: 18-25 years
Gender: Male or Female

PLANNING AND FORECASTING PERSONNEL NEEDS

McDonalds uses the method of “TREND ANALYSIS” for forecasting its personnel needs.
This is a method in
which the firm studies its past employment needs over a period of years to predict future
needs. McDonalds has
been operating since a very long time and by now it has full information of where it stands in
the minds of
people. No doubt McDonalds has raised its value above mark. McDonalds forecasts its
personnel needs
according to what has been the trend of its sales, revenue and labor needs in the past. For this
they use two ways

MANAGEMENT ESTIMATES
Managers are asked to forecast their staff requirements. They will do this on the basis of past,
present and likely
future requirements.

WORK STUDY TECHNIQUES

Work-study specialist’s works out how long various jobs take, using available machinery and
equipment.
Provided they know what sales are likely to be, they calculate the numbers of employees
required and the hours
they will need to work. McDonalds forecasts the need of staffing employees by inside and
outside supply of
candidates.

INSIDE SUPPLY OF CANDIDATES

In this forecasting method Information is collected on employees already working within
McDonald’s. For this
purpose McDonalds uses Qualification Inventory system.
A Qualifications Inventory of current employees gives the thorough information about
current employees’
skills, education, career, performance and other interests. HR requirements of McDonald's
may be met by
training and developing current staff rather than recruiting externally

OUTSIDE SUPPLY OF CANDIDATES

After determining the number of employees that can be obtained internally McDonalds
searches for the rest
from the outside. For this McDonalds information system plays a vital role. It keeps track of
the economic
conditions and employment rate and after that forecasts its external needs accordingly. In this
way McDonalds
develops a pool of talent as much as possible so that it can choose best out of it.

RECRUITMENT
Recruitment is the first part of the process of filling a vacancy. It includes examination of the
vacancy, the
consideration of sources of suitable candidates, making contact with those candidates,
attracting application
from them, short listening, interviews and finally induction of the selected candidates within
the budget of the
department company. In McDonalds recruitment process isdecen tr aliz ed. Every branch of
McDonalds is
independent to hire the employees. Usually at McDonalds employees are hired in a form of
badge. Also the
transformations of employees within the franchises of McDonalds took place for recruiting
the employees. A
typical McDonald’s restaurant can employ about 60 people who include the both managerial
and floor- based
staff.
RECRITMENT METHODS IN MCDONANLDS
McDonalds follow the two basic types of recruitment such as:
Internal Recruitment
External Recruitment

INTERNAL RECRUITMENT
McDonalds uses the following two basic methods for internal recruiting
Job Positioning
Succession Planning

JOB POSITIONING
In Job positioning McDonalds select candidates from inside by considering their past
performance.

MCDONALDS publicize their open jobs on their site ,where their employees could apply for
the job they also
publicize it in their restaurants on Notice Boards. So that the working employees could be
informed from the
vacant position and apply.

SUCCESSION PLANNING
For the executive posts McDonalds follow a succession planning technique where they
recruit their managers
or senior employees to executive level on the basis of their performance.

EXTERNAL RECRUITMENT
McDonald’s often goes for external recruitment though they mostly prefer internal
recruitment or internal
promotion of the employees to the higher posts.
External recruitment of McDonalds involves:
Recruiting via internet
Advertising
College Recruiting

RECRUITING VIA INTERNET

Now a Days Recruiting via Internet is becoming very common. McDonalds has its own site
where they
publicize for the jobs and offer people to send their CV’s through online process and often
recruit employees
from their.

ADVERTISING
Advertising is the most used method for recruitment. McDonalds approaches the Newspaper
or a magazine
adds mostly to invite employees for jobs.

COLLEGE RECRUITING
McDonalds follow the most common method of college recruiting known asInter ns hips
because many floor
base employees usually join McDonalds for internship. Here they have one advantage that
theydon’t have to
pay them much and their workforce need is also fulfilled for a temporary period of time.
SELECTION
The selection process of McDonalds involves the following factors:
Initial screening
Testing
Interviewing
Background investigation

INITIAL SCREENING
In initial screening McDonalds collects the application forms of candidates from theirW ebs
ite online
and also by Mail or Fax and than they choose those applications which are according to their
job
requirements and call those candidates for further process.
TESTING

TESTING EMPLOYEES IN MCDONALDS

McDonalds take the following tests to check the abilities, knowledge and nature of work of
employees.

MCDONALDS TESTING FACTORS

McDonalds conduct tests to know the following factors:
Motor& physical skills
Personality( attitude test)
Cognitive abilities (Aptitude and Intelligence test)

.TESTING PROCEDURE
McDonalds always want a multi-skilled worker or employee who could work efficiently at
any level. For that
when they hire employees they test according to their above mentioned criteria that the
employee should be
little or more skilled to work in any area. In McDonalds employees are tested in two basic
ways first through
some ORAL OR WRITTEN TESTS they are judged and then they are allowed to perform a
PRACTICAL
WORK, where the McDonalds managers could evaluate them more accurately.

MCDONALDS TESTING METHODS

McDonalds took following tests of employees:
Physical fitness test
Attitude test
Aptitude test
Case study test method
On-the-Job evaluation test

INTERVIEWNG
All candidates after formal testing are called for the final interview. This is where the final
and overall
assessment of the candidate takes place and selection decisions are made.

MCDONLADS INTERVIEW
The selection interview of McDonalds is classified it into as given classifications:
Interview format
Interview content
Interview administration

INTERVIEW FORMA T :
McDonalds employ Structured or Directive Interview content; the managers first make a set
of proper
Questionnaires related to job and also predetermine their answers and ask those questions
from applicants in a
structured order. Here questionnaires are prepared according to the job requirements.

INTERVIEW CONTENT:
McDonalds has a set interview content known as Situational Interview, they ask situational
questions from
their employees like give them a situation and ask their opinion that what would they do in
that situation but the
situations are job-related.

ADMINISTERING INTERVIEW:
For administering the test McDonalds conducts a most common used system Panel
Interview.PA N EL

INTERVIEW: McDonalds take panel interview. In this interview a panel or group of

executives or senior

employees usually HR manager and head of the particular department ask situational or other
basic questions
from the candidate. If an interview for a most senior or executive post ahs to be done than the
General Manager
(GM) of the McDonalds conduct that interview.
INTERVIEW PROCEDURE
In McDonalds interviewing system apply subsequent method:
First they examine the job description, specification, duties, and requirements for a job such
as

skills,
knowledge or abilities.
After that they create situational (job-related) questions for the candidate to know their

capabilities.
Finally, they appoint the interviewers to conduct and evaluate the interview


TRAINING AND DEVELOPMENT

At McDonalds, a job is never just a job; employees know that working at McDonalds
provides them with a
wealth of knowledge, experience, skills and above all a true fun work Environment.
McDonalds follow a highly
structured training process. Employees in McDonalds are trained at all levels. They are
trained to work on floor
base area to back area. McDonald's employee training programs are based on the company's
core principles
such as:
Quality
Service
Cleanliness
Value
Abbreviated as (Q, S, C & V)
ORIENTATION
As like other organization McDonalds training and development program starts from
orientation. In
McDonald’s employee orientation program range from 5 to 6 months and it includes such
contents:
A

Welcome Orientation Day is arranged for the new employees where they got familiar with
the history or
background of the company, cultural values, present conditions, future goals and objectives
or plans of the
company. They also watch videos related to company’s information and handouts are also
given to them.
Employees are formally told about what to wear their dress code or uniform

Then employees have to spend 15 to 25 days in different sub departments under one
department.

The head of the department decides that what objectives a new incoming employee should
carry out.

In McDonald each employee works with or under a

“Training Buddy” (s u p er v is o r ) .
Employees get at least 6 months of time to show their skills and knowledge.

After these 5 to 6 months orientation employees get their appointment letters as a permanent
employee of

McDonalds.

TRAINING METHODS IN MCDONALDS

The most used training methods that McDonalds follow are given as:
On-The-Job Training
Job Rotation
Lectures
Audio-visual based training
These training methods are often practiced by entry-level workers or crew members basically
for the new
employees

LECTURES
The first stage of training is at the Welcome Meetings. These are usually arranged in a
Training Centre or
Room. These lectures set out the company's standards and expectations for the new
employees. Where,
employees are introduced with a complete description about the job, and a guideline that how
to work and what
are the job requirements and procedures. A verbal outline is given to the employees.

ON-THE-JOB TRAINING
he majority of training is floor based, or "On-The-Job" training because people learn more
and are more
likely to retain information if they are able to practice as they learn.
All new employees have an initial training period. Here they are shown the basics and
allowed to develop their
skills to a level where they are competent in each area within the restaurant. They will also
attend classroom-
based training sessions where they will complete workbooks for quality, service and
cleanliness

JOB ROTATION
McDonalds also uses the most known type of on the job training “Job Rotation”. It is done
within the specific
department so that the employee becomes familiar with all level of jobs.

AUDIO-VISUAL BASED TRAINING

For the new trainees McDonalds also provide them with DVDs, films, video or audio tapes
related to the
operational or functional work of the organization.

EVALUATION OF TRAINING
McDonalds evaluate its training program through On-The-Job Behavior that after the training
session the behavior of employees are changed or not. They match up the performance
behavior of employees before training and after training like, the behavior of a crew member
is more courteous to customers? The
Inventory control manager is now more practical in his work and manages the inventory more

systematically?

DEVELOPMENT CAREER MANAGEMNT

At McDonalds there are different management development plans. McDonalds has
established adevelopment
program for managers, employees and also for the workers at lower level. It includes:
Management development plan for employees at all levels.

McDonalds provide facilities to employees in their career planning.

Transformation of employees is also carried ou

t within the branch or in other branches.
Different training courses are also arranged for the employee’s i.e. McDonald arranges a

Summer Crash
Course for their employees. McDonalds arrange following methods for specifically managers
and employees
development:
Job rotation
JOB ROTATION
In job rotation process the managers are allowed to work in different department or sub-
department at every
level to learn more about their job and identify their strong and weak points.
Restaurant Managers progress their way through Shift Management and Systems
Management courses
while attending one of our 22 regional training centers. Once these courses have been
completed, managers attend Hamburger University where they learn the additional
knowledge and skills they need to run a multi- million dollar restaurant.
The

Mid-Management learning path at Hamburger University is for business consultants
anddepartment
heads. It builds on their leadership and consulting skills, teaching individuals how to
effectively operate a
business and how to coach and consult with others to run great restaurants.
The

Executive Development learning path helps reinforce ongoing business and leadership skills
for top
management. The courses available at Hamburger University build upon the leadership
competencies needed to
support employees, Owner/operators and sales growth.
PERFORMANCE APPRAISEL
Performance appraisal compares each employee’s actual performance with his or her
performance standard.
Managers use job analysis to determine the job specific activities and performance standards.
“Performance appraisal helps in estimating employee’s current performance, setting work
standards and
then providing feedback to employees with the aim of eliminating performance deficiencies”.

PARAMETERS OF PERFORMANCE APPRAISAL

The performance appraisal is based on the following some of the parameters:
Ethics
General Knowledge/ IQ,
Confidence
Motivation
Team Work
Communication Skill
At McDonalds every employee is on a race to give the best performance through their
knowledge, abilities and skills. An appraisal session is also arranged for the employees. An
appraisal interview in McDonalds is taken by Head of the Department only and the progress
report of the employee is also in the hands of the Head of the Department. In McDonalds the
yearly appraisals of employees are done in June to July.
PERFORMANCE APPRAISEL METHOD
McDonalds uses the Graphic Rating Scale Method for evaluating the performance appraisal
of employees.
GRAPHIC RATING SCALE METHOD
Through the Graphic Rating Scale the head of the department rate the person according to the
performance of
its work, skill, knowledge, experience and after the assessment according to the rating scale,
rate the employee
as appraised.
Graphic rating scale method involves the following traits:
Communication
Personal effectiveness/efficiency
Teamwork
Productivity
Quality of work
Reliability
In McDonalds employees are rated according to these or more traits. Rated on his/her
performance that the
employee is good in communication skills or not, the employee could work independently on
its own. The
employee is cooperative with other his/her co-workers. The productivity of work that weather
he/she could
work more and proper in less time and finally is the employee is reliable means he/she will
work on time
appropriately. Well the graphic rating scale method which McDonalds use is a best and
simplest method for
thembecause employees from floor base to managerial level are rated easily. The scale lists
the suitable traits or
standards for the employees according to their work or job and they are rated fairly as
according to their
performance.
COMPENSATION AND BENEFITS PROGRAMS
COMPENSATION METHOD
McDonald uses Broad banding trend of compensation, in this trend wide range of jobs and
salary levelsare
represented byBands. So the employee, whose job falls on one of these grades, gives the pay
range listed on
that grade and determines his or her salary. McDonalds has this system of compensation
because, broad
banding allows for flexibility in terms of pay, growth and movement.
WHY THEY USING BROADBANDING METHOD
McDonalds is using broad banding method for compensation because it is the most used
method by companies and it is relatively easy to handle. As there are so many jobs and each
job has its own description and value so by making bands of similar jobs and assigning them
the appropriate salaries will make easy for McDonalds to set the pays of employees
COMPETENCY-BASED PAY
McDonalds don’t apply the Competency-Based Pay Method because in this method pays are
established as
according to the performance of employee such as: If a crew member is working according to
the level of
manager his performance is equivalent to manger so their pays will be same. But McDonalds
pay their
employees according to the job or level. Mangers own different higher pays as compared to
worker or Crew
members.
ESTABLISHMENT OF PAY RATES
Why pay rates are established????
It is very difficult to set pay for any organization without conducting pay rates. Pay rates are
necessary to define
because it is better for both employer and employee.
FOR EMPLOYER: He sets salaries according to the market or could be more from market
and employer get
knowledge about market.
FOR EMPLOYEE: Similar nature of jobs categorized in groups and employee feel secure
that he is getting
salary according to market rate or could be more.
PAY RATES IN MCDONALDS
McDonalds follow following steps in establishing of pay rates
A.MCDONALDS SALARY SURVEY
McDonalds conduct salary survey, that what other employers are paying for the same nature
of job to there
employees. McDonalds pays more to their employees as compare to market. So, the salary
survey is necessary
for establishing pay rates. McDonalds has also given its salary ranges on different jobs in
their site.
LOWER LEVEL JOBS: For the lower level jobs like Crew Members or clerical workers
McDonalds conduct
a salary survey throughTeleph on e orI n ter n et.
HIGHER LEVEL JOBS: Whereas, for the higher level jobs such as at managerial level a
formal survey is
conducted by McDonalds. In McDonalds the employer collects the information from other
employers in a form
of questioners, in which he asks about the overtime policies or bonuses, the starting salaries
or other
increments.
B. JOB EVALUATION :
The second step in establishing pay rates is evaluating jobs or JOB EVALUATION
In Job Evaluation jobs are evaluated or compared with each other on the basis of
qualifications, skills,
responsibilities and working conditions. McDonalds follows the Job Classification method of
job Evaluation
because they have categorized their
jobs into two main classes known as:
Part Time Employees
Full Time Employees
McDonalds evaluate its job on the basis of working hours of their employees more clearly for
the crew
members they use the part time job evaluation and for managerial level staff they use full
time evaluation
PART TIME EMPLOYEES:
Well for part time employees MacDonald’s pay them on the basis of their working hours
means hourly wages.
FULL TIME EMPLOYEES:
The Full Time Working Employees are given salary on monthly basis they are known as
permanent employees.
C. GRO UP SIMILAR JOBS INTO PAY GRADES
After job evaluation, McDonalds grouped similar nature of jobs into pay grades for
establishing pay rates. As McDonalds uses the job classification technique so their jobs are
already in a grouped form and they establish pay grades according to part time and full time
jobs.
D.PRICING OF PAY GRADES
This step assigns pay rates to pay grades. For assigning pay rates to any level of job,
McDonalds usesW age
Curve which shows the relationship between value of the job and wage price for the job.
McDonalds through
wage curve assign pay rates to part time and full time jobs according to the requirement of
job. More
specifically according to the job nature of employee such as for part time crew member the
pay rate will be
different from full time depending on their wor
MCDONALDS MANAGERIAL JOBS
McDonalds price their managerial jobs on the basis of their performance of work, skill,
knowledge and
experience. It is different for all level of managerial job.
McDonalds price its managerial jobs as:
Base pay
Incentive pay
BASE PAY:
Employees' base pay is the most significant portion of their compensation,
McDonald's maintains the competitiveness of base pay through an annual review of both
external market data
and internal peer data.
INCENTIVE PAY:
Incentive pay provides their employees with the opportunity to earn competitive total
compensation when
performance meets and exceeds goals. The Target Incentive Plan links employee
performance with the
performance of the business they support. TIP pays aBonu s to top of employees in their base
salaries.
INCENTIVES PROGRAMS
ORGANIZATION – WIDE
McDonalds has developed under given People Philosophy for compensating and motivating
their employees
RESPECT AND RECOGNITION
Respect is one of the major factors in any organization all over the world. Managers and all
employees of
McDonalds treat with respect to their seniors or subordinators and value them.
VALUES AND LEADERSHIP BEHAVIORS
All of employees act in the best interest of the Company and tries to achieve their goal in a
better way. They
communicate openly, listening for understanding and valuing diverse opinions. They accept
personal
accountability. They coach and learn.
COMPETITIVE PAY AND BENEFITS
Pay is the main factor of job, mostly pay is dependant on persons skills, experience etc .In
McDonalds Pay is at
or above local market rates and according to the vacancy offered by the organization.
LEARNING, DEVELOPMENT AND PERSONAL GROWTH:
Learning is the basic task of employee other than his pay, that what he or she learnt from his
job, it’s known as
his or her experience. Employees receive work experience that teaches skills and values that
last a lifetime.
Employees are provided the tools they need to develop personally and professionally.
RESOURCES TO GET THE JOB DONE:
It is ensured that a comfortable place to work with access to the materials, equipment and
information has been
provided to do the job. To the employees at all levels such basic benefits and compensation
are given:
Health and Protection Work or Life Balance Pay and Rewards
INCENTIVES FOR SENIOR MANAGEMNT
McDonalds is providing different incentives to their senior managers such as:
LONG TERM INCENTIVES:
Long term incentives are granted to eligible employees to both reward and retain key
employees whohave
shown sustained performance and can impact long-term value creation at McDonald's
MEDICAL AND HOSPITAL FACILITIES:
It includes the some percent of compensation in the fee of hospital.
FREE FURNISHING ON HAVING NEW HOME (MANAGERIAL LEVEL): The
employee’s at
mostexecutive posts are given new and fully furnished home
PROVIDENT FUND (ESOP):
Provident fund is given to employees as according to the companies policy mostly
organizations cut 5%from
the salary of the employee and he/she could take that provident fund at any time they
demand.
CHOICE TO GET NEW CAR AFTER FIVE YEARS (COMPANY CAR PROGRAM):
It is an incentive that McDonalds give to its senior employees that they could own car for
their office and
personal use and change the car after five years given by the company.
UMRAH PACKAGES:
Special Umrah packages are given to employees at senior level.
RECOGNITION PROGRAMS :
McDonalds recognition programs are designed to reward and recognize strong
performers, these include:
Presidents' Award (given to the top 1% of individual performers worldwide)

Circle of Excellence Award (given to top teams worldwide to recognize their

contributions for advancing our vision).
BENEFIT PROGRAMS
HEALTH AND PROTECTION: Health and protection includes the following benefits:
Medical Aid
Pension or Provident Fund
Disability Cover
Funeral Cover
Accidental death & dismemberment (AD&D)
WORK OR LIFE BALANCE: McDonald's believe in work and life balance and they offer
the following
programs to assist their employees:
Annual Leave
Leave of Absence
Educational Assistance
Employee Discount Card
Staff Appreciation Days
PAY AND REWARDS: McDonalds pay and reward method is fair which is as given:
Highly competitive salary packages
• Performance based bonus
• Employee of the Month program
• Annual employee recognition awards
• Opportunity for local and/or international training at all levels
STEPS TAKEN BY MCDONALDS TO MOTIVATE ITS EMPLOYEES
McDonalds should follow these steps to keep their morale and motivation level high:
Offer the insurance for employees

Increase the wage rate

Give incentives to their employees on different events

Arrange parties just for McDonalds staff once in a month

EMPLOYEE RELATIONS
In any organization employee relation plays a key role. If the employees of an organization
are satisfied it
means that the organization could touch to the heights of success because a satisfied
employee will work more
passionately.
COLLECTIVE BARGAININIG
Collective bargaining is a process in which employee’s union and the management negotiates
with eachother
and signs an agreement on the labor issues such as pays, benefits, working or other facilities.
COLLECTIVE BARGAINING IN MCDONALDS UNION
There is no such collective bargaining system is McDonalds because McDonalds don’t have
a predefined labor
or crew unions. McDonald’s culture supports anti-union concept. When a crew member or
any lower level
employee joins the McDonalds he/she have no basic knowledge of Unions, but after working
for a period of
time, when they get familiar with the culture of McDonalds they become more firm at anti-
union concept. The
former CEO and Chairman of McDonalds Peter Ritchie says “Unions stifleCreativity”; “there
is no place for
unions at McDonalds”; “ I have spent my entire life opposing unions”; “I have had some
horrible and
stressful fights with union leaders, it’s often very difficult keeping them out”
McDonalds has a well systematic pay rates, benefits and employee needs program so when a
new employee
comes to join McDonalds they define every single policy, values, culture and employee
benefits or
compensation programs. So he employee working in McDonalds is well-aware of their
procedure of employee
relations. More precisely, when McDonalds hire an employee they make
every thing clear and if the employee agrees to work in such environment than they allow
him to work.
PAY- RELATED BARAGAINING IN MCDONALDS
Unions play an important role in pay-related issues. Most of the time employees are not
satisfied with their
pays. So they create problems, although many different agreements are signed between
employees and
management. But as in McDonald’s there are no such unions so the problem related to pay to
employees would
be that if a crew member do wage bargaining with employer individually In McDonalds most
of the
employees don’t favor for this method because they typically believe that
such strategies would be:
Bad for morale
Difficult to administer
More time consuming
Encourage discrimination or favoritism
Although on other hand some employees believe that it should be done on the basis of:
On-the-job performance or workplace effort.
Like if an employee performs well his/her pay should be increased through individual
bargaining, that the
employee himself should demand for more pay.
But the management or managers of McDonalds believe that pay is not a subject on which
employees negotiate
individually, because according to them they have no discretion to enter into such
arrangements that involve
altering individual crew or small group wages on the grounds of performance. In McDonalds
when employee is
recruited they specially discuss the terms and conditions about the pays and negotiation
issues on pays.
MCDONALDS EMPLOYEE RELATIONS
McDonalds has a comprehensible strategy of occupational health, safety and security of
employees.
HEALTH SAFETY IN MCDONALDS
McDonalds has a safe environment regarding to health, there are no such serious health
safety threats in
McDonalds but they have developed a systematic health and safety program for those
employees specially who
work in production lobby.
Such factors could be a health and safety problem for McDonald’s employees:
High temperature
Hygiene
Smoking
Infectious disease
MCDONALDS HEALTH SAFETY SYSTEM
McDonalds keeping in view the above factors take the following steps ahead to prevent their
employees from
any health hazard:
VENTILATION SYSTEM: Proper ventilation systems such as exhausts are placed so that the
high
temperatures don’t cause any health problem to employees who work in production lobby
(cookingarea).
INSPECTION: For the hygiene of office and cooking place per month a inspector from food
department visits
to observe the cleanliness system, this is better for employees themselves and the customers
as well.
NO SMOKING RULE: In the office a smoking rule is obeyed for the health protection of
employees and
restaurant environment.
INFECTIOUS DISEASES: A medical check up of employees is conducted to know that any
employee
doesn’t have any viral disease and if any employee becomes serious ill he/she is granted a
leave so that no other employee could suffer from same problem.When employees are hired
in theitraining session they are informed with a complete description and safety measures
related to their health.
SAFETY AND SECURITY IN MCDONALDS
For safety and security of employees two areas are considered such as, Inner area of the
office and outside
threats.
Inside office means that the safety and security of office, like M

cDonalds has a production lobby inside their
restaurant where they cook or prepare food so the danger of Fire Explosion is always there
for them and as
well like all other offices the threat of Electric Short-Circuit. Also any sort
of Criminal Act from employees.
Outside area signifies that if in McDonalds any one enters and makes them

HOSTAGEor Commits Bomb
Blast, is a sign of big threat to their employees and restaurant as well.
MCDONALDS SAFETY AND SECURITY SYSTEM
McDonalds according to the above mentioned security risks use two basic facilities of
security given as:
Natural Security
Mechanical Security
NATURAL SECURITY:
Natural security means securing your office architectural area. McDonalds has Security
Guards and Check Post
in parking lot.
SECURITY GUARDS:
They have security guards in their Parking Area and at the Entrance Door as well.
CHECK POST:
Also a check post is placed at theEntr ance of parking lot.
MECHANICAL SECURITY :
In mechanical security system technological systems or machines are used to enhance the
security system.
McDonalds has placed a scanner at their entrance door, CCTV cameras are also fixed in and
outer area of the
restaurant, fire extinguishers and stabilizers’ for short circuit. SCANNER: Scanners are
placed atEntr ance
door for every customer or person to detect any metallic thing like weapons etc.
CCTV CAMERAS: CCTV cameras help McDonalds to monitor every movement of
customers or any person
who is in the restaurant.
FIRE EXTINGUISHERS: For the danger of fire explosion Fire Extinguishers and other Aid
Equipments are
placed in the office area and production lobby of McDonalds. Fire alarms are also placed.
STABILIZERS: In the case of electric short-circuit are used to retain the voltage of electricity
and any mishap
doesn’t take place.
CONCLUSION
HR POLICIES AND PRACTICES OF MCDONLADS
The HR polices and practices involve certain core tasks to fill such as: Recruitment,
Selection, Evaluation,
Performance, Compensation and certain other factors. The HR department of McDonald’s
fulfills all the
requirements of these tasks or functions in a true sense of the meaning. McDonald’s strongly
believes in the
well being of people and its workforce and that is one reason why it is the leader in the fast
food industry and it
proves that the strategies the company has chosen are right and efficient for their business.
EVALUATION OF HR POLICIES AND PRACTICES OF MCDONALDS
The policies and practices of McDonalds which we discussed above in the report are
according to our literature all their strategies of HR meet up with are literature of course
because during interview we asked all their HR practices according or comparing to our
literature.
SUGGESTIONS
After critically evaluating the HR Functions of McDonald’s we recommend the following
suggestions
according to the each section of HR: JOB ANALYSIS: For job analysis we recommend that
McDonalds should
also includePer for mance
Standardsand Human Requirements which would help them more in making job description
and
specification.
JOB DESCRIPTION AND SPECIFICATION: Well their job description and specification is
not clear they
have intermingled it. In Job Description they have written about the skills required in an
employee not about the duties he/she would have to perform. Similarly in Job Specification
they have just written general information not about the skills and personality traits.
PLANNING AND FORECASTING: In planning and forecasting McDonalds is using trend
analysis method
for personnel needs but according to our opinion Computerized Forecast should be used
because McDonalds is a large organization and they should estimate their need of employees
through computerized system it would be easier for them.
TESTING : All over McDonalds has a good formal testing system but in our view for crew
members specially
who deal with customer care area a Communication Skill Testshould be taken which includes
testing of accent,
language, talking way and facial expression of employees

INTERVIEW: McDonalds should also ask Behavioral Questions from the candidates so by
knowing their
past experience they could judge their attitude and mental abilities more accurately.
COMPENSATION & BENEFITS: For the employees at lower level like crew members, a
properM edical
Check-up after every month should be provided to them and theirpays should be increased
comparing to the
economic conditions of country. For higher level employees aLife- ins ur ancepolicy should
be made

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