McDonalds

Group : Transformers
Mohammed Sayyan Alias Mc San
Nitish Kumar Alias Mc Nit
 CONTENTS

Introduction
4 P’s of Marketing in McDonalds

Product
Price

Promotion

Place
 Introduction

• Started in 1948 by Dick and

Mac McDonald in San
Bernardino, California.
• Started “Speedy service
system” in 1948.
• Ray Kroc first franchisee
• 27000 outlets in 119 countries
 McDonalds in India
• First McDonalds started in 1996
• Started joint venture by Amit jatia’s
Hardcastle Restaurant Pvt ltd and Vikram
Bakshi’s Connaught Plaza Restaurants Pvt ltd.
• 160 Restaurants across Country
• Both Veg and Non-veg products are served
except Beef, Pork and Mutton
 First P is “Product”

• In order to satisfy the palate of the local

population in a country, McDonald's offers a
regionalized version of its menu. The menu list
is differs from region to region.
 Based on Indian Menu

• Veg – Mc Veggie
 HR In McDonalds - Training

• Hamburger university – Hamburgerology

• Career long training
• High school students
• French fries cooking to crew chief to manager
• Looking towards “Mcfamily” for leadership
• Diverse workforce
 HR In McDonalds - Benefits

• Benefits communication planning team

• Profit sharing – McDESOP
• Preferred provider organization (PPO)
• Education assistance program
• Sabbaticals
• Child care
Situation analysis & recommendations

EMPLOYEE MORALE
ANALYSIS
 EMPLOYEE MORALE ANALYSIS

Morale

a state of mind,
a mood,
a mental condition

The degree of enthusiasm

willingness to achieve a group goal
 EMPLOYEE MORALE ANALYSIS

Employee morale involves making people feel

valued for their contributions, being there to
listen to them, and making sure that they get
the support they need to do their work
FACTORS AFFECTING EMPLOYEE MORALE

OBJECTIVES OF THE
ORGANISATIONAL DESIGN
ORGANISATION

PERSONAL FACTORS REWARDS

GOOD LEADERSHIP AND

WORK ENVIRONMENT
SUPERVISION

JOB SATISFACTION
 RECOMMENDATIONS
RECOMMENDATIONS
TWO WAY
COMMUNICATION

JOB ENRICHMENT

WELFARE
MEASURES

EMPLOYEE
RECOGNITION
PROGRAM

BACKING THEM
UP
Performance
FACTORS AFFFECTING PERFORMANCE

Personal ability
★ Knowledge, technology skills, etc

Commitment
Gary Dessler suggested : Winning commitment
★ people first value ★ value based hiring, securitizing
★ double talk ★ hard side rewards
★ communication ★ actualizing.
★ transcendental meditation

Motivation
 ANALYSIS OF PROBLEM
Mc Job
The character of Mc Jobs by 5 dimensions

High rate of changing the Job

Low level of performance
 Recommendations

Financial reward

→ Improving the employees’ wage

→ Medical insurance
→ Welfare card

Working system

→ rotation of tasks
 Recommendations

•Training → Encourage the developing career

- Communication skills
- Operation skills
- service skill
Recommendations
Discrimination Problem in
McDonald’s
 DISCRIMINATION

Direct DISCRIMINATION Indirect

TYPES OF DISCRIMINATION IN McDONALDS

Racial Discrimination
culture, colour, less payment to low ethnic groups
TYPES OF DISCRIMINATION IN McDONALDS

Gender Discrimination
Male dominating females
TYPES OF DISCRIMINATION IN McDONALDS

Age Discrimination
Youth vs old
 Recommendations

• Make young and elderly ones work together

• Continuous training on employees about discrimination

• Allow/Encourage people to speak up the moment such

incidents are faced
• Continuous reminding the workers using the intranet of
company, bulletins etc
 Recommendations

• During job advertisements, it should be clearly written

“equal opportunities employers" which eliminates racial
and colour discrimination
• Should investigate and seek to resolve any complaint of
discrimination by an applicant or employee.
Salary
 Overview of Employment at McDonald’s

• Employees at McDonald’s are

generally termed as
McEmployees.

• A typical McDonald restaurant

consists of approx 60
McEmployees.

• Salary distribution is done

according to the work an
McEployee does.
 Overview of Employment at McDonald’s

McEmployees are categorized into 3 different types

– Hourly paid employees

• Crew members
• Non-crew members

– Restaurant based employees

– Staff employees
Framework of HR issues related to Salary

We’ll study the HR issues occurring at McDonald’s due

to salary and compensation in 3 steps

1. Job description and analysis.

2. HR issues related to that particular type of job.

3. Own recommendations on the HR issues.

 HR issues related to Salary
Crew members
 Hourly-paid employees.
 Primary job – prepare food, serve customers.
 Carry out the tasks for efficient running of the restaurants.
 Paid between $140 – $160 per month.

HR Issues
 Feel underpaid compared to other hourly-paid employees
working alongside.
 Issue of job equity.
 Less incentives or bonuses compared to other hourly-paid
workers.
 Less likely to be promoted to higher level of jobs.
 HR issues related to Salary

Recommendations

 Should prepare a salary chart and should be paid accordingly.

 There should be proper distinction in respect to salary paid to other hourly-paid employees.

 Incentives and bonuses paid to them should be more flexible.

 HR issues related to Salary

Other Hourly-paid employees

 They work alongside the Crew members.

 Include Training Squad Members, Dining Area Hostesses, Party

Entertainers, Administrative Assistants, Security Co-ordinators,
Maintenance Staff, Night Closers, Floor Managers and Shift
Running Floor Managers.
 Perform other daily activities except processing and serving food.

 Usually paid around $170 - $200 per month.

 HR issues related to Salary
HR Issues
 Desire more pay because of the administrative work they carry out.
 De-motivated as promotion is less likely possible.
 So demand for high bonuses and incentives for them.

Recommendations
 Further job categorization and pay allotment.
 As less chances of promotion are there, bonuses and
incentives should be increased.
 HR issues related to Salary
Restaurant-based employees
 These are salaried managers
 Their job is too manage the restaurant's operations, crew and business
performance.
 Only 3-4 employees of these type and they work in shifts.
 Salary range is between $250 - $330 per month.

HR Issues
 Demand more pay as they do total administrative work.
 Demand more bonuses and incentives .

Recommendations
 Salary should be high and fixed as there cannot be job equity issue in less
number of employees.
 Bonuses and Incentives should be given according to performances and
results.
How HR issues related to salary/compensation can be tackled

1. A qualified 2. Retain current

personnel employees

3. Ensure Equity

4. Reward desired
behaviour 5.Control Costs

6. Comply with legal

regulations

8. Further
7. Facilitate
understanding administrative
efficiency
Conclusion
 References
Anthony,W.P., Kacman,K.M. and Perrewe, P.L. (2002) Human
Resource Management: A Strategic Approach. 4th Edition, R.R.
Donnelley, Ohio
George, R, (1998), McDonaldization thesis. Thousand Oaks Calif :
SACF, London, pp. 58-63
Gary, D, (1993), Winning Commitment : How to build and keep a
competitive workforce, McGraw Hill, New York
Kroc,R. (1977) Grinding it out: The Making of McDonald's,
Contemporary Books, Inc, USA
Werther and Davis, ( 2003 ), Human resource and Personnel
Management, 5th Edition , McGraw Hill, Singapore,
Micheal R.C, (1982), Human Resource Management : Global
Strategies for managing a diverse workforce. 5th Edition, Prentice Hall,
Inc , New Jersey
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Thank you