Chapter 1
Introduction
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McDonald’s Pakistan I’m lovin’it
1.1 1.1 Visi Vision on:: To be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness and value, so that their food makes every customer in every restaurant smile
1.2 1.2 Miss Missio ion: n: McDonald's mission is to be their customers' favorite place and way to eat with inspir inspired ed people people who deligh delightt each custom customer er with with unmatc unmatched hed qualit quality, y, servic service, e, cleanliness and value every time.
1.3 About About McDona McDonald’s ld’s:: 1.3. 1.3.1 1 Rest Restau aura rant nt:: Aiming to be the world's best quick service restaurant experience, McDonald's started its operations in Pakistan in 1998 and is a leading fast food service retailer for its valued customers. With a strong belief in the phrase when it's green it's growing, McDonald's Pakistan is growing with the focus to provide friendly and quick service restaurant restaurant experience to their customers. customers. Currently Currently McDonald's McDonald's Pakistan is operating in various cities of Pakistan I-e Lahore, Faisalabad, Karachi, Hyderabad, and Islamabad & Rawalpindi with the plans to cover the customer base in various other cities of the country . McDonald's Pakistan is a part of the Lakson Group of Companies, with a regional office in Lahore and the main Head Office in Karachi. They are operating with a network of restaurants to reach our customers for providing friendly services in all different regions of the country.
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McDonald's a Global Phenomenon : Formed in 1954, McDonald's brand is the leading global foodservice retailer with more than 30,000 local restaurants serving nearly 50 million people in more than 120 countries each day. Its rich history began with the founder Ray Kroc's vision and his commitment, transformed in their talented executives, and will keep the shine on McDonald's arches for years to come. 1.3.2
Core Values of McDonald’s:
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Integrity and Honesty
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Open, Respectful and Supportive
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Prepared to take challenges and see them through
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Deep regards for Customers, Business partners a nd employees
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Quality in Product
1.3.3 Departments of the Organization: •
Finance Department
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Human Resource Management
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Marketing Department
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Operation Department
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IT Department
Quality: McDonald’s is very strict about the quality of services they provide. They don’t compromise anything over quality. Quality is considered to be one of their foremost objectives. They want 100 % quality of service. Quality is checked on for:
High standard of food, services provided to the customers.
Communication skills i.e. English speaking skills
Appearance and grooming
Ability to communicate with guests and handle versatile situations.
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1.4 Hierarchy of McDonald’s: Head of Department
Senior Manager
Manager
Senior Manager
Manager
Manager
Manager
Assistant Manager
Assistant Manager
Executive
Executive
Coordinator
Coordinator
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Chapter 2
HR Planning & Methods of Job Analysis & Evaluation
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HR Department of McDonald’s
2.1 HR Introduction: At McDonald's Pakistan, their people are their most important asset. They provide the best employment experience for their employees in order for McDonald's Pakistan to achieve their goal of providing their valued customers with the world's best quick-service restaurant experience. They strive to recruit the best, hire the best, and provide the best place to work The commitment to their employees is shaped on the simple fact "We value you, your growth and your contributions" and this is they strive to achieve through their actions every day.
2.2 HR Planning: HR planning’s 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 deliver the right skills and knowledge to the right person for getting the right job done. The strength, for making the strong team players to shine under the Golden Arches lies in the People Practice and Development Program.
HR practices:
The field of HRM comes into existence in the result of these questions:
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How did people come to be employees in their organization?
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How were they selected?
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Why do they come to work on regular basis?
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How do they know what to do on their jobs?
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How does management know if the employees are performing adequately?
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And if they are not, what can be done about it?
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Will Will today today employ employees ees be adequa adequately tely prepar prepared ed for the techno technolog logical ically ly advanced work the organization will require of them in the years ahead?
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What is the compensation process?
The HR department of McDonald’s fulfills all the requirement of these questions in the the true true sen sense of the the mean meanin ing. g. As HR depa depart rtme ment nt deal dealss with with peop people le McDonald’s strongly believe in well being of people because it is a known quotation that
“If you take over the liabilities of your employees they will take yours”
HR Functions Of McDonald’s:
HR department of McDonald’s Pakistan does certain functions :
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Planning
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Recruitment & selection
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Training
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Administration
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Company manuals
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Performance management
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Decision procedures procedures
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Define company’s policy
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2.3 Job Analysis Method: Job analysis is the procedure of determining the duties a nd skills required for a job and the kind of person who should hired for it. Analyzing the job in McDonald’s is done by the Human Resource Department. They develop the job description description related to different different departments departments regarding regarding their duti duties es,,
resp respon onsi sibi bili litie ties, s,
repo report rtin ing g
relat relatio ions nshi hips ps,,
work workin ing g
cond condit itio ions ns
and and
supe superv rvis isor ory y resp respon onsi sibi bili liti ties es.. Once Once when when the the job job desc descrip ripti tion on is prep prepar ared ed,, restructuring in the job is done based on the observations of the seniors. In McDonald’s job Analysis is done on the basis of Interviews.
2.4 Job Evaluation Method: Job Evaluati Evaluation on means means making making decisi decision on about about the wages wages and salaries salaries of the employees on the basis of job analysis it can also be called as compensation. In McDonald There are two types of working hour’s employees: •
Part Time Employees
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Full Time Employees
In McDonald’s they have predefined standards on which employees are awarded on the basis of their skill, knowledge and experience. The Full Time Working Employees are given salary on monthly basis were as the part time employees are given salary on the basis of the total hours they have worked
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Chapter 3
Recruitment & Selection
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Recruitment Recruitment and Selection Process
3.1 Recruitment: Recruitment is a phase that immediate precedes selection. Its purpose is to pave the way of the selection process by producing ideally, the smallest number if candidates who appear to be capable. The objective of recruitment procedure is to attract suitable candidates in order to produce a short list for future investigation in the selection process.
3.2 Recruitment process:
In McDonald’s the recruiting and hiring process for selecting starts from the applications submitted by the individual. We provide their CVs along with the applications. These applications and CVs are screened out on the basis of: •
Merit;
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Institute; and
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Experience etc.
After After this, this, The Candidat Candidates es who meet the criteria criteria are selected selected for the furthe further r process. Then the H.R Department lists out the salient features of the CVs (only the accepted CVs). Then the H.R. Manager takes a test based on: •
English comprehension comprehension
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Basic mathematics
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I.Q. and
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Some Some ques questi tion onss abou aboutt the the part partic icul ular ar job, job, for for whic which h the the applicants have applied.
In McDonald’s Recruitment is done on the demand of the Organization. There are two types of Recruitment is done •
Internal Recruitment
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External Recruitment
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3.2.1 Internal Recruitment:
McDonald’s do internal recruiting i.e. they select the candidates from the inside by consid consideri ering ng a specifi specificc number number of intern internal al potent potential ial candid candidates ates who who have have applied for the job on the basis of their past performances and qualifications for the the requi require red d job. job. Any Any empl employ oyee ee at a reaso reasona nabl blee post post can can subm submit it his his /her /her application for the job. The management has all the information relating to the person’s record about the job he/she is currently performing. On yearly basis, the summary of the employees is maintained in the form of records, which gives the organization maximum chance in selecting the potential employees as the heads of the the depa depart rtme ment nts. s. The The HR mana manage gerr and and the the Head Head Mana Manage gerr of the the speci specifi ficc department interview the selected employees.
3.2.2 External Recruitment: McDonald’s often go for the external recruitment they mostly try to go for the internal recruitment or internal promotion of the employee to the high post but in case case an employ employee ee leaves leaves the organi organizat zation ion They They Organi Organizat zation ion have have a bulk bulk of appl applic icati ation on recei receive ved d thro throug ugh h the the webs websit itee www.rozee.pk .The organizatio organization n advertise through newspapers or web.
Criteria Required For Employment:
The qualifications required for employment in McDonald’s are as follows:
Appearance and grooming
Professional Professional Qualifications
Experience and knowledge
Communication skill in English
Leadership skills
Potential for growth
Reasoning and Judgment
Computer skills
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3.3 Selection Process: With the pool of applicants, the next step is to select the right person for the job this usually means whittling down the applicant pool by using the screening tools . In McDonald the selection process involves the following steps: •
Initial Screening
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Employment Test
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Background Investigation Investigation
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Medical Examination
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Permanent job offer
Employment Tests: Every big organization in the world uses a test for the hiring of people, from inside as well as outside. These companies use many types of tests to judge the people we are hiring and to have utmost guarantee that the people we are hiring are perfect from every point of view. These test judge the candidate according according to his mental and cognitive abilities. McDonald’s McDonald’s take tests as far as their candidates candidates are concerned concerned to check there full abilities. The tests are of different nature like:
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Test Of Cognitive Abilities
These These kind kind of tests tests includ includee IQ tests, tests, genera generall and intelle intellectu ctual al abilit abilities ies,, verbal fluency, vocabulary etc. These tests are generally conducted while recruiting executives and supervisors. •
Motor And Physical Ability Tests
These tests include checking the performance of the employee usually working on the machines in operation department to check their reflexes and while working at their work place.
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Measuring Personality Interests
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Involves taking into consideration the personal interests and motivations of the person in his field.
Candidate’s ratio: Within the pool of candidates, if the demand is for 1 employee then the ratio for selecting is the employees is 1:5, and if the demand is for 2 employees then the ratio becomes 2:10 and so on.
Interviews:
When the managers make the selection the phase of interviewing the employee comes. The interview is taken from the employees in two ways i.e.
Top level interviews
Low-level interviews.
In top-level interviews the General and Division Manager of McDonald’s takes the interview of candidates for the Executive post. In low-level interviews the Heads of the departments takes the interviews of candidates for the Associate heads, officers, managers, and assistant manager’s posts. After the selection is made the General Manager approves the candidates.
Type of Interviews: Paneled interviews are taken from the candidates and the panel consists of the HR manager and the head of the particular department for the interview is being
conducted. If an interview for an important post has to be done for a function head then the GM himself indulges into it and performs a combined interview.
Background Investigation: Once an employee employee is appointed appointed the investigati investigations ons and reference reference checks are done by the HR manager. In McDonald’s, reference checking is referred to as revising the ‘Job History’ which contains
Job applied for i.e. the experience of the employee for the job.
Relevant qualifications.
Salary
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After Conducing the interview and all relevant investigation they employee is called to join the job.
Number of employees: The ratio of women working in McDonald’s with respect to men is 1:3. Total employees in McDonald’s are more than 1300 plus. The policy of McDonald’s is to give give fema female less full full chan chance ce to do the the job. job. Ther Theree are are 3 shif shifts ts oper operat ated ed in McDonald’s
Morning Shift
Evening Shift
Night Shift
.
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Chapter 4
Training & Development Development
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Training and Development
4.1 Orientation:
Orientation of the new employee is carried out according to priority of heads. Firstly the employee is formally told about what kind of outfit to wear on work. Then he/ she are provided with the orientation kit. The employee has to spend 15 – 20 days days in differ different ent depart departmen ments ts under under one specific specific departm department ent like like if an employee is appointed in the HR department then he/she has to spend 20 days in diffe differen rentt sub sub depa depart rtme ment ntss unde underr the the HR Depa Departm rtmen entt like like HR deve develo lopm pmen entt department, HR administration Department, Hr training Department etc. The head of the department specify the objectives to be carried out. Empl Employ oyees ees get get the the eval evalua uati tion on time time of 6 mont months hs to prov provee their their skil skills ls and and knowledge about the job being done. And after 6 months they are given the appointment letters as permanent employees.
4.2 Training:
The employees are given training in the “Training Room” in the form of lectures. Firstly the employee is given the on-job training and then he/she is given the actual task to perform. McDonald’s arranges summer crash courses and wrap section for the employees. Job Rotation is done within the specific departments and not outside the departments.
4.3 Development: McDonald’s is a large organization with many employees working in different departments departments of the company. company. Every year the company company hires many people people for it executive as well as managerial posts. In McDonald’s there are different types of development plans for management for e-g MDP 1, MDP 2 , MDP 3 and CLDC (Crew Leader Development Course). There are also development programs for
the low level jobs for enhancing the skills of the employees
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Career Development and Fair Treatment:
McDonald’s provides facilities to employees for career development during their employment. Different training courses are offered to their employees such as summer crash courses arranged. Transfers of the employees are carried out with the consent of the employees. The communication of employees is directly with their head of the department. There is a vital concept of two-way communication. At McDonald's, employment is at will. This means that employees are free to terminate their employment at any time, for any reason, with or without cause, and McDonald's retains the same rights. . The Management career in McDonald's Operations starts from the position of Trainee Manager, and follow the path like the one outlined below. •
Trainee Manager
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Second Assistant Manager
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First Assistant Manager
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Restaurant Manager
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Beyond Manager
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Chapter 5
Performance Appraisal Process & Methods
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Performance Appraisal
5.1 Performance Appraisal: Performance Appraisal is a structured formal interaction between a subordinate and supervisor ,that usually takes the form of a periodic interview , in which the work performance of the subordinate is examined and discussed, with a view to identify weakness and strength as well as opportunities for improvement and skill development.
5.1.1 Performance Appraisal Method:
Empl Employ oyees ees in McDo McDona nald ld’s ’s have have a race race to win win base based d on thei theirr effor efforts ts.. The The employees do their best to give the best performance through their skills and knowledge. A kind of competition is among the employees to become the best employee. The appraisal methods used are of two types, i.e.
Graphical Rating Scale
360 degree Feedback
Appraisal interview is taken by the department head only. Progress report is in the hands of the department head. Yearly appraisals of employees are done with in June-July. Appraisals are done yearly but they can also be done at any time of the year by the department head on the basis of employee’s marvelous performance.
Through the graphical rating scale the head of the department rate the person according to the performance of its work, skill, knowledge, experience and also on the performance in the training programs and after the assessment according to the rating scale rate the employee is appraised.
Upward feedback is done by 360 degrees degrees i.e. i.e. inform informatio ation n is collect collected ed “all “all
arou around nd”” an empl employ oyee ee from from his his or her her supe superv rvis isor ors, s, subo subord rdin inat ates es,, peers peers and and customers. This term is also known as “multi source assessment”. Subordinates can appraise their seniors. With the help of the “Employee Satisfaction Survey” the heads get to know which employee is giving what type of output. Raise in McDonald’s
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salary is done by 10%and if performance is also counted then 20% increment is given at any time of the year.
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Chapter 6
Compensation Compensation and Benefits
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Compensation Compensation and Benefits
6.1 Compensation: Compensati Compensation on means all forms of pay or rewards going to employee employee and arising arising from their employment .It has two main components, direct financial payments (wages, salaries, commission, and bonuses). And indirect payments (financial benefits like employer – paid insurance and vacations).
6.2 Employee Benefits:
McDonald's benefits program is designed to attract, energize, reward and retain talente talented d people people who will will produc producee super superior ior busine business ss result resultss and enhanc enhancee their their leadership position. They recognize the importance of a strong benefits program.
People Promise:
People Promise is a statement of commitment to every person in the McDonald's system. It is how they remind people what they can expect and how high their goal is: “To be the best employer in each community around the world”
McDonald's and its independent owner/operators have made a commitment to their employees that they strive to achieve with their actions every day. And to make sure they deliver on this promise, they have in place five people principles. These people principles reflect McDonald's values and describe the culture they embrace.
Respect and Recognition:
Manage Managers rs treat employe employees, es, as they they would want want to be treated treated.. resp respec ecte ted d and and valu valued ed..
Emplo Employee yeess are
Empl Employ oyee eess are recogn recogniz ized ed form formal ally ly for for good good work work
performance, extra effort, and teamwork and customer service.
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Values and Leadership Behaviors:
All of employees employees act in the best interest interest of the Company. Company. They communic communicate ate openly, openly, listening listening for understand understanding ing and valuing diverse diverse opinions. opinions. They accept personal accountability. They coach and learn.
Competitive Pay and Benefits:
Pay is at or above above local market. Employees value their pay and benefits.
Learning, Development and Personal Growth:
Employ Employees ees receive receive work work experie experience nce that that teaches teaches skills skills and values values that that last last a lifetime. lifetime. Employees Employees are provided provided the tools they need to develop develop personally personally and professionally.
Resources to Get the Job Done:
Employees Employees have the resources resources they need to serve the customer. customer. Restaurants Restaurants are adequately staffed to allow for a good customer experience as well as to provide schedule flexibility, work-life balance and time for training
6.2.1 Benefit Categories: For McDonald's Corporation employees at corporate, division and region offices, many benefits those are: •
Medical and hospital facilities
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Free furnishing furnishing on having new new home (managerial level) level)
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Provident fund ( ESOP)
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Company vehicles are provided to employees
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Choice to get new car after five years
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Umrah packages are offered to employees
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Leasing facilities are provided to buy cars, motorbikes, etc
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Picnics are arranged once every quarter
McDo McDona nald ld’s ’s offe offerr long long-te -term rm bene benefi fits ts to its its empl employ oyees ees,, like like givi giving ng them them multinational visas, etc.
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Chapter 7
Stress Management & Negotiation Techniques
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Stress Management
7.1 Job Stress: Job Job stres stresss is a chro chroni nicc dise diseas asee cause caused d by cond condit itio ions ns in the the work workpl place ace that that negatively negatively affect an individual individual's 's performance performance and/or overall well-being well-being of his body and mind
Organizational managers are interested in maintaining a low level of job stress for good good reas reason ons: s: high high leve levell of stres stresss a resul resultt in low low prod produc ucti tivi vity ty,, incre increas ased ed abse absent ntee eeis ism m and and turn turnov over, er, and and an asso assortm rtmen entt of othe otherr empl employ oyee ee prob proble lems ms includ including ing alcoho alcoholis lism, m, drug drug abuse abuse and a host host of cardio cardiovas vascul cular ar proble problems. ms. Job Related Stress has been associated with a vast array of diseases, such as coronary heart heart diseas disease, e, hyperte hypertensi nsion, on, peptic peptic ulcers ulcers,, coliti colitiss and variou variouss psych psycholo ologic gical al problems including anxiety and depression
7.1.1 Causes of Job Stress: The causes of Job Stress are: •
Role Conflict
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Work overload
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Job Insecurity
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High Demand for performance
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Technology
At McDonald’s Job Stress is handled by conducting counseling sections in which the Counselor identifies the flaw of the employees. Their objective is if people are delivering and if they have any problem they solve it through counseling.
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7.2 Negotiation Techniques: Negotiation Techniques are the ways the employer communicates its expectation and goals of the organization to the employees. At McDonald the expectations of the employer are: •
On Time,
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Neat and Clean
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Skills and Training
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Standards
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Teamwork
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Clea Clean n
Spot Sp otle less ss.. ....
Tidy Tidy.. ....
Spar Sp arkl klin ing. g.
Cust Custom omer erss
expe expect ct
ever every y
McDonald's will be clean. •
Welc We lcom omed ed Gu Gues estt crew crewme memb mber erss make make each each cust custom omer er feel feel like like a welcomed guest.
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Service Service depe depends nds on cre crewmemb wmembers ers to deliver deliver accurate accurate and friendly friendly service with a smile.
To communicate these expectations Crew meeting are conducted
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Critical Evaluation and Recommendations Recommendations After critically evaluating the HR Functions of McDonald’s we recommend the following suggestions •
Job Job Analy Analysi siss info inform rmat atio ion n shou should ld be coll collec ected ted thro throug ugh h structured questionnaire because it is more suitable method to collect job analysis
information in an organization like McDonald’s because it is inexpensive and efficient way to obtain information from a large number of employees. •
McDonald is using “job position” source of internal recruitment but it should should also also use Rehiring as a source source of intern internal al recruit recruitmen mentt becaus becausee former former employ employees ees are known known quanti quantitie ties, s, and alread already y familia familiarr with with the company’s culture, style, and ways of doing things. This will also reduce the training expenses.
•
McDonald’s McDonald’s should should use perf managerial performa ormance nce stimulatio stimulation n test for managerial posit position ionss becaus becausee it is effecti effective ve method method for select selecting ing and promot promoting ing managerial position .Although it is expensive but very effective method.
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