13601 . 13603.

13613

HISTORY
The McDonald's restaurant
concept was introduced in San
Bernardino, California by Dick
and
Mac
McDonald
of
Manchester, New Hampshire. It
was modified and expanded by
their business partner, Ray
Kroc, of Oak Park, Illinois, who
later bought out the business
interests of the McDonald
brothers in the concept and
went on to found McDonald's
Corporation.

McDonald's Corporation
McDonald's is the world's leading
fast-food company by sales
32,000 restaurants serving burgers
and fries in about 120 countries
Most of its outlets are free-standing
units, but McDonald's also has many
units located in airports and retail
areas.

McDonalds on Forbes
list

#6 worlds most valuable brand

#207 in Sales
#124 in Profit
#702 in Assets
#87 in Market value

Data Up to 1st Jan. 2012

Vision
TO GIVE THE WORLDS
BEST
QUICK SERVICE RESTAURANT
EXPERIENCE.

Mission
Don't worry about making
money Love what you are doing
and always put the customer
firstAnd success will be yours!

Products

In order to cater to local tastes and culinary

traditions, and often in respect of particular
laws or religious beliefs, McDonald's offers
regionalized versions of its menu among and
within different countries. As a result,
products found in one country or region may
not be found in McDonald's restaurants in
other countries.
McDonald's predominantly sells hamburgers,
various types of chicken sandwiches and
products, French fries, soft drinks, breakfast
items, and desserts. In most markets,
McDonald's offers salads and vegetarian
items, wraps and other localized fare

Human Resource
Management
The human resource department at
McDonalds is working as a separate
department and holds an importantplace
in almost all major operations of the
organization
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
POLICY-MAKING
WELFARE
SUPPORTIVE
BARGAINING AND NEGOTIATING
ADMINISTRATIVE

HR PLANNING
HR plannings purpose is to determine
what HRM requirements exist for current
& future supplies & demands of workers.
To realize the McDonald's service vision,
the organization believes in
strengthening their team and ensures to
deliverthe right skills and knowledge to
the right person for getting the right job
done.

The Job
structure

restaura
nt
workers

corporat
e staff

franchis
e
owners

RESTAURANT JOBS
In the restaurant jobs, there is a clearly defined
career path, from Crew Member to Crew Leader to
FloorManager to Assistant Manager to Restaurant
Manager.
And
from
there
onwards
the
opportunities for growth and development are
limitless. Area Supervisors, Operations Consultant
etc.
-TRAINEE MANAGER
-CUSTOMER CARE REPRESENTATIVE
-CREW MEMBER

CORPORATE JOBS
Managerial jobs are categorized as Office Jobs in
McDonalds. At Depending upon the knowledge,
experience and right aptitude, there are 3 key entry
points in the office jobs.

INITIAL LEVEL
MIDDLE LEVEL
HIGHER LEVEL

 INITIAL 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 LEVEL As a middle entry level
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
andprocedures.
HIGHER LEVEL The higher entry level job are
accountable for the execution of assigned
tactics and strategic plan. Theprovision of
leadership approach to work will enhance their
sense of ownership and part of the winning
team member.

Franchise owner
The personal growth and business
knowledge youll develop from our
extensive training and your experience
as a franchisee is invaluable. We
encourage all our franchise owners to
grow and to continually improve
themselves and their businesses. They
welcome contributions and an open
exchange of ideas between the company
and our franchisees.

Recruitment, Selection and

Retention :
For McDonald's, people are one of
the most important asset. This is
because customer satisfaction begins
with the attitudes and abilities of
employees and effective workers are
the best route to success.

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 On The Basis Of Their CV
Interviews
and finally induction of the selected candidates within the budget of the
department company. In McDonalds recruitment process is decentralized.
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

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 alsopublicize 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 McDonalds often goes for external recruitment
though they mostly prefer internal recruitment or internalpromotion of the
employees to the higher posts. External recruitment of McDonalds Recruiting via
INTERNETNow a Days Recruiting via Internet is becoming very common.
McDonalds has its own site where theypublicize for the jobs and offer people to
send their CVs through online process and often recruit employees from their
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 also but their main focus is through internet and advertising.

Selection
After the final interview the manager will
rate the applicant's responses. A successful
applicant will have demonstrated skills and
behaviors that have been identified as
being key to the position.
Selection process
Written Process
Initial Interview
Aptitude Tests
Reference Checks
Final Interview
Relocation

TRAINING AND
DEVELOPMENT:
The first stage of training is at the
Welcome Meetings. These set out the
company's standards and expectations.
The majority of training is floor based, or
"on-the-job" training
The employees in McDonalds are
provided with training to achieve high
standards in the organization.
Training involves-Direct training,
Training abroad
Specific Training Courses

Methods Of
Training
A)Orientation
B)On-Job-Training
C)Classroom Training

Levels Of
Training
A)Computer-Based
Training
B)Crew Members Training
C)Managers Training

PERFOMANCE APPRAISAL AND

INCENTIVES SYSTEM OF
MCDONALDs:

Performance Appraisals McDonalds conducts performance review semiannually.

Some standards are made and defined according to
which the employees have to perform.
Then after 6 months all the employees are evaluated
that whatever they come up to standards or not.
If an employee does not perform well then feedback
is provided to them so they can improve
There are four levels to evaluate the performance of
employees: out standing ,excellent, good, need
improvement

Incentives
Incentives in McDonalds are given to
employees on the basis of performance.

Types of incentives:
1.Cash Based
Attendance Allowance
Annual Allowance
Medical Allowance
Leave Fair Assistance
2. Non Cash Based
Crew Of the year
Crew Of the month
Branch of the year
Access to gift certificates
Free food

Rewards
1. The rewards are
given on the basis
of the performance
2. There is arise of
10% in salary and if
performance is also
counted then
20%increment given
at anytime of the
year.

Benefits
McDonalds benefit program is designed to
attract, energize, reward and retain talented
people who will produce superior business
results and enhance their leadership position.
MacDonald provided health insurance benefit
to its full-time employees.
Benefit communication planning team is
designed to include a variety of people from
various corporate departments to ensure
adverse representation

How McDonald's motivate

their employees:
McDonald's motivate their employees by give the
staff the privilege to enjoy the following benefits:
Free Meal Allowance
Free Life Assurance (value dependent upon service)
Private Health Care (for employees aged 19+ with 3
years' service)
Stock Purchase Scheme
Employee Discount Card
Service Awards (at 3, 5, 10, 15, 20 and 25 years
service)
Health Care Principles

Major Findings
At McDonalds, the corporate culture and
management system are strictly imposed, detailed
operating manuals followed to the letter and an
extensive field organization checks on each store
to enforce standards.
The organizational development focused upon
generating revenues from the existing operations.
The biggest change is the expansion in the menus
based upon the product development strategy,
and market expansion strategy,
They give different trainings to their
employees/managers to work in more productive
way, and to achieve the goals of the organization.

 The domestic growth has slowed as a result ofmarket

saturation but McDonalds global food service
business delivered good results, and was possible only
due to expansion and positive comparable sales.

McDonald's develop a deep connection between

McDonalds and the local communities in which it
operates

McDonald's believes that the success of the

restaurants and the company is achieved through the
people it employs.
The company aims to recruit the best people, to retain
them by offering on going training relevant to their
position and to promote them when they are ready.

13601.13603.13613