Final Assignment of HRM On MaCdonalds
Final Assignment of HRM On MaCdonalds
Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Contents Acknowledgement Executive Summary History & Introduction McDonalds Pakistan Vision, Mission & Objective Core Values, Structure & Department HR Department Of McDonalds HR Functions Of McDonalds Planning Recruitment & Selection Training & Development Career Development & Fair Treatment Performance Appraisal Compensation & Benefits Stress Management & Negotiation Techniques Conclusion Recommendations Page No. 2 3 4 5 6 7 9 10 11 13 18 21 22 23 25 26 27
ACKNOWLEDGEMENT
In the name of Almighty Allah, the most beneficent and merciful to the mankind. This project would not be possible without the encouragement and guidance of number of people. We feel highly obliged and want to express our deepest gratitude to our respected teacher Sir Zargham for her advice, help and guidance throughout this semester. We would like to express our deepest gratitude to our parents and friends for their inspirations, love and constant support.
EXECUTIVE SUMMARY
This project is about Mc Donalds Pakistan, which is one of the largest and the best -known global food service retailer with more than 30,000 restaurants in 121 countries serving 47 million customers each day. First we have studied a brief history of the company worldwide. Then we have introduced McDonalds Pakistan, the organizations strategies and its structure. Basically, this project aims to have an overview of the McDonalds human resource management. The different functions at the disposal of HR include provision of different laws for the protection of employees rights. Strategies for the development of the organization, job analysis for the hiring of new employees, personnel recruiting, employee testing and selection, performance appraisal are also integral parts of HR. These all functions are described in context of McDonalds Pakistan. This will help better understanding the different processes involved in HR functionality.
About McDonalds:
Restaurant:
Aiming to be the world's best quick service restaurant experience, McDonalds 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 its growing, McDonald's Pakistan is growing with the focus to provide friendly and quick service restaurant experience to their customers. Currently McDonalds 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.
McDonald's Pakistan
World Wide Strategies:
McDonalds is part of the Lakson group of companies, a leading business in Pakistan. McDonalds first restaurant has opened its door to the people of Pakistan in September 1998 in Lahore. Karachi opened its first restaurant after one week. There are now 18 restaurants in four major cities of Pakistan: 7 in Karachi, I in Hyderabad, 9 in Lahore and1 in Faisalabad since the company first opened its doors to the people of Pakistan. This launch was met with unprecedented enthusiasm form the citizens of Lahore who are known for their liveliness, vigor and penchant for quality food. Today millions of Pakistanis place their trust in McDonalds to provide them best quality food, quick service and value for money. World-famous French fries, Big Mac, Quarter Pounder, Chicken McNuggets and egg McMuffin are not only kids' favorites but also lure in the customers of all ages. McDonalds is firmly committed to give back to the community where it operates. They are happy to become involved because they recognize that organizations have a role to play in helping communities to work successfully.
Be the best employer for people in each community around the world. Deliver optional excellence to customers in each restaurant. Achieve enduring profitable growth by expanding the brand and leveraging the strengths of McDonalds system through innovation and technology.
Vision Statement
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.
Mission Statement
McDonald's mission is to be their customers' favorite place and way to eat with inspired people who delight each customer with unmatched quality, service, cleanliness and value every time.
Objective
To satisfy the internal customers because they are the window to the External customers.
Structure:
McDonald's are structured along functional lines. Their Chief Executive oversees five major areas of activity:
1. Operations (equipment and franchising) 2. Development (property and construction) 3. Finance (supply chain and new product development) 4. Marketing (sales marketing) 5. Human Resources (customer services, personnel, hygiene)
McDonalds Structure:
The structural hierarchy of McDonalds Pakistan is as follows Trainee Business Manager: The trainee business manager should have the right skills and qualities, in order to operate Mc Donalds.
2nd Assistant:
At this level the second assistant really begins to develop his/her management skills and learns what goes into running a shift.
1st Assistant:
At this level the first assistant brings together operations and management skills and gets grip with finance, human resource and training.
Restaurant Manager:
The restaurant manager has all responsibility for people, profitability and every other aspect of running the restraint.
Area Supervisor:
A team of restaurant managers looks to the area supervisor for advice and guidance for everything from the recruitment of staff to local marketing initiatives.
Operations consultant:
As operations consultant is an experienced manager, he will be involved in the long term planning for the restaurants.
Operations manager:
Acting as a business consultant, the input of an operations manager plays a major part in the performance of as many as 10 restaurants
Quality:
McDonalds is very strict about the quality of services they provide. They dont 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
HR Department of McDonalds:
McDonalds is divided in to five regions in the world, which are further divided into sub regions. As this organization is internationally owned, so all its decision is taken from the head office, but they are somehow changed to suit the different cultural backgrounds of the region. As an organization is known by its well groomed and intelligent staff at to support and maintain its best quality at every level, So McDonald is also very careful when hiring for an employee. For that reason, its HR department is very efficiently working to make sure the best is hired. Here 95%of the workforce is restaurant based while 5%of it is in the official running of the organization.
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 McDonalds Pakistan to achieve their goal of providing their valued customers with the worlds 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.
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HR practices:
The field of HRM comes into existence in the result of these questions: How did people come to be employees in their organization? How were they selected? Why do they come to work on regular basis? How do they know what to do on their jobs? How does management know if the employees are performing adequately? And if they are not, what can be done about it? Will today employees be adequately prepared for the technologically advanced work the organization will require of them in the years ahead? What is the compensation process? The HR department of McDonalds fulfills all the requirement of these questions in the true sense of the meaning. As HR department deals with people McDonalds 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 McDonalds:
HR department of McDonalds Pakistan does certain functions: Planning Recruitment & selection Training Administration Company manuals
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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 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.
Job Analysis:
Job analysis is the procedure of determining the duties and skills required for a job and the kind of person who should hired for it. As HR activities grow in scope and complexity, many duties, such as recruitment and selection, performance appraisals, training, discovering unassigned duties are delegating to the HR department. But HR specialist does not know the details of job as well as operating managers do. Knowledge about job and their requirement must be collected through a process known as job analysis.
Job Evaluation:
Job Evaluation means making decision about the wages and 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 hours employees: Part Time Employees
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Full Time Employees In McDonalds 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.
Candidate Profile:
MBA / PGDBA with specialization in Marketing must be willing to travel. Must have 2-4 years of experience in the areas mentioned below preferably from the retail industry.
Job description:
Identify priority restaurants, develop sales building plans and evaluate results for priority restaurants, map business opportunities and challenges for restaurant, event marketing, and assist with the development of mini-market marketing plans, provide input on marketing needs from customer viewpoint, monitors the proper execution and impact of all marketing activities. As job analysis is the process to understand the responsibilities of the job and in McDonalds it is done in these different ways:
Questionnaire:
Employees fill questionnaires in every 2nd month to know the performance of the restaurant so that information about duties, responsibilities and activities of a job can be gathered.
Observation:
Observation is also a way to gather the information about a job and to achieve different satisfaction levels. Once the firm has determined its staffing needs, it takes every possible step to hire the best employees so as to fill the available positions.
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The hiring:
The hiring process has two components: Recruitment Selection
Levels of Hiring:
At McDonald, Hiring is done at two levels: Trainee Managers. Crew Members.
The difference between both of these is that the training managers are required to learn to smoothly Whereas manage the the working of the outlet, for so they are trained accordingly. service and
crewmembers
have
shifts
cleaning,
counter
Recruitment process:
In McDonalds 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:
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After this, The Candidates who meet the criteria are selected for the further 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 Basic mathematics I.Q. and Some questions about the particular job, for which the applicants have applied.
Types of Recruitment:
In McDonalds Recruitment is done on the demand of the Organization. There are two types of Recruitment is done
Internal Recruitment:
McDonalds do internal recruiting i.e. they select the candidates from the inside by considering a specific number of internal potential candidates who have applied for the job on the basis of their past performances and qualifications for the required job. Any employee at a reasonable post can submit his /her application for the job. The management has all the information relating to the persons 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 departments. The HR manager and the Head Manager of the specific department interview the selected employees.
External Recruitment:
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McDonalds 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 incase an employee leaves the organization They Organization have a bulk of application received through the websitewww.rozee.pk .The organization advertise through newspapers or web.
Types of Resources:
McDonalds corporation fills its positions by.
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External sources:
Eternal sources used by McDonalds are Advertisement in Newspapers Advertisements are done in all the leading papers so that every eligible candidate can apply for the job. Advertisement on Web Site: Sometimes advertisement is also done on website so that the opportunity cant be missed by anyone. Internships: Sometimes students get jobs while doing internship in McDonald.
Selection:
At McDonalds, people are the most important factor. They seek only those people, who can think, feel, express themselves, learn, teach and hence grow. Their growth is the companys growth.
Fresh People:
McDonalds provides thorough In-house training to fresh people relatively inexperienced people. Hiring people having no previous work experience also helps them greatly in adjusting to the distinct culture of the organization.
Justified Selection:
The selection is entirely based on merit, which conform the selection criteria without any bias towards gender, religion, race, color, nationality, age.
Selection Process:
After advertising for the job in the papers or in any other way when applications are received, these steps are followed:
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screening of Applicants
After building a pool of candidates applications, short listing of selective applications is done by the HR manager.
department designs and conducts the tests as and when hiring needs arises. 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 to his mental and cognitive abilities. McDonalds take tests as far as their candidates are concerned to check there full abilities. The tests are of different nature like: Test of Cognitive Abilities Tests
These kind of tests include IQ tests, general and intellectual abilities, 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. Measuring Personality Interests Tests
Involves taking into consideration the personal interests and motivations of the person in his field. Candidates ratio:
Within the pool of candidates, if the demand is for 1 employee then the ratio for selecting is the employees is1:5, and if the demand is for 2 employees then the ratio becomes2:10 and so on. Initial Interview
The ONE to ONE structured interviews are conducted by Restaurant Manager after the written test. Aptitude Tests
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These are those tests, which are done for the training managers. Reference Checks
They are to make sure that references provided by the candidates are valid so that no confusion remains. Final Interview
Candidates who give the best results are called for the final interview. A panel of five or six interviewers does interview
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Training involves;
Direct Trainings This is that training which is given directly after the selection so that an employee can understand the position he will be working for and its responsibilities. Training Abroad programs at are arranged levels so that other so qualified that they people can can train
Different employees
different
abroad
understand
Methods of Training:
The different methods of Training used by McDonalds are:
Orientation
This is a way of direct training which provides new employees with basic background information they need to perform their job satisfactorily. New employees get a handbook. Working hour Performance reviews Vacations Employee benefits Personnel policies Safety measures and regulations
The orientation is performed by the HRD Manager and the employees are introduced to their supervisors. There is a different orientation process for every type of employee. But the common orientation for all the employees is McDonald's People Promise: We value you, your growth and your contributions.
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On-the-Job Training
On-the-job training is to train a person to learn a job by actually doing it. Every day, around the world; restaurant members receive on-the-job training and coaching in skills and procedures essential to their work.
Classroom Training
Classroom courses, developed and led by training experts, prepare outstanding restaurant employees for advancement.
Computer-Based Training:
A new computer-based training system is bringing interactive learning experiences to crew members and managers right in the restaurants.
Levels of Training:
There are two levels of training at McDonalds:
At McDonald's, training never stops. Crew members are trained extensively on all food safety and food handling processes. Trainees work while they learn the operational skills necessary for running each of the 25 positions in restaurant - from front counter to the grill area.
Managers Training:
McDonald's is dedicated to professional training and development. The average McDonald's restaurant manager spends more than 2,000 hours over four years in training of one kind or another. This is about the same amount of time that a typical four-year college student spends in the classroom.
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Management Development Program (MDP): The MDP series is designed to help you become the most effective manager that you can be. Operations Consultant Course (OCC) Training Consultant Course (TCC)
Development:
McDonalds is a large organization with many employees working in different departments of the company. Every year the company hires many people for it executive as well as managerial posts. In McDonalds there are different types of development plans for management for eg 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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Performance Appraisals:
It is a process by which the performance of an employee is evaluated. McDonalds conducts performance review semi-annually. Some standards are made and defined according to which the employees have to perform. Then after 6 months all the employees are evaluated that whether they come up to our standards or not. An OJE (on- job-evaluation) is performed in order to evaluate the employees. If an employee does not perform well then feedback is provided to them so they can improve. The appraisal process in McDonalds includes PA forms for every particular job which involves: International McDonalds standards. Assessing the employees actual performance relative to these standards. Providing feedback to the employees.
After giving the total grade to the employee the appraiser writes down about the strength and the areas needing improvement of the employee
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
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yearly but they can also be done at any time of the year by the department head on the basis of employees 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 i.e. information is collected all around an employee from his or her supervisors, subordinates, peers 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 salary is done by 10%and if performance is also counted then 20% increment is given at any time of the year.
Employee Benefits:
McDonald's benefits program is designed to attract, energize, reward and retain talented people who will produce superior business results and enhance 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 McDonalds 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
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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.
Benefit Categories:
For McDonald's Corporation employees at corporate, division and region offices, many benefits those are: Medical and hospital facilities Free furnishing on having new home (managerial level) Provident fund (ESOP) Company vehicles are provided to employees
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Choice to get new car after five years Umrah packages are offered to employees Leasing facilities are provided to buy cars, motorbikes, etc Picnics are arranged once every quarter McDonalds offer long-term benefits to its employees, like giving them multinational visas, etc.
At McDonalds 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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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, Neat and Clean Skills and Training Standards Teamwork Clean Spotless... Tidy... Sparkling. Customers expect every McDonald's will be clean. Welcomed Guest crewmembers make each customer feel like a welcomed guest. Service depends on crewmembers to deliver accurate and friendly service with a smile. To communicate these expectations Crew meeting is conducted.
Conclusion:
The operative philosophy of the McDonald's system is based on the Quality, Service, Cleaning and Value for 44 years. The company offers a standard menu, although it develops in each culture special products that are adjusted to the pleasure of the community. McDonald's is successful because it has a system of corporate norms and individual opportunities, to all the Franchises they are integrated in the same philosophy of values and clear expectations. McDonalds guides all the actions according: To organizational values as working in team, To feel passion for the work always offering the best of themselves, To be committed with the partners and with the mission of the company, To be entire in each one of the actions, to be leaders.
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Recommendations:
No doubt McDonald's is a huge giant size organization but it also needs some improvement which is; McDonald's must start its services for customers as well as product. Job enlargement and job enrichment should be applied for retention of employees. There should be more than one feedback session for improvement of performance of employees. Recruitment must be conducted for higher posts also to select more skilled persons. There should be proper and flexible arrangements for training of managerial level employees. Job enlargement and job enrichment should be applied for retention of employees. There should be more than one feedback session for improvement of performance of employees.
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