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REPORT
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HUMAN RESOURCE MANAGEMENT
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5/5/2017

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 SUBMITTED TO
Sir Kamran Azeem

SUBMITTED BY
Iqra Khalid (9663)
Yousuf Agha (9624)
Sarosh Khatri (9655)
PROGRAM
BBA 6 A

DATE
May 05, 2017

2
 Letter of Transmittal

To,
Mr. Kamran Azeem
Course instructor
Human Resource Management
Kasbit, Karachi.

Dear Sir,

We are very thankful to you for giving us the opportunity to make a report on
Human Resource Management of McDonald under the course of Human Resource
Management.

In this report our focus is on the company’s history, activities of human resource
management and job analysis. We are of firm belief that this report will not only
provide you with all the necessary information pertaining to this topic, but will also
cover all aspect and hopefully meet your expectations. It will be our pleasure to
provide you with further details if required.

Sincerely yours,

All group members

3
 ACKNOWLEDGMENT

We would like to express our deepest appreciation to Sir Kamran Azeem, the
course instructor, for his guidance and constant supervision and providing us the
possibility to complete this report.

Furthermore we would also like to acknowledge with much appreciation the

crucial role of all teammates who contributed their efforts to assemble the parts of
this report.

4
 TABLE OF CONTENTS

1 Executive Summary 7

2 Introduction 8

3 Vision 8
4 Mission 8

5 Human Resource Management 8-9

6 Human Resource Management in McDonald’s 9

7 Human Resource Objectives 9-10

8 Human Resource Activities 10

9 Planning 10-11

10 Human Resource Planning at McDonald’s 11-12

11 Recruitment 12-13

12 Recruitment at McDonald’s 14-15

13 Selection 15-16

14 Selection Process at McDonald’s 16-17

15 Training and Development 17

16 Training and Development at McDonald’s 17-18

17 Performance Management 18

18 Performance Management in McDonald’s 18-19

19 Appraisals 19

20 Appraisals in McDonald’s 19

5
 21 Compensation 19

22 Compensation in McDonald’s 19-20

23 Job Analysis 20-23

24 Conclusion 23

25 Recommendation 23-24

6
 EXECUTIVE SUMMARY
This project is about McDonald’s which is one of the largest and the best-known global food
service retailer with more than 30,000 restaurants in 119 countries serving 47 million customers
every day. First we have studied a brief history of the company worldwide. Then we have studies
about their vision and mission.

Basically, this project aims to have an overview of the McDonald’s human resource
management, the different objectives, activities of human resource management which includes
planning, recruitment, selection, training and development, appraisals, performance management
and compensation, job analysis for hiring of the new employees.

These all functions are described in the context of McDonald’s. This will help better
understanding the different processes involved in HRM of McDonald’s

7
INTRODUCTION

McDonald’s Corporation is the world’s largest chains of hamburger fast food restaurants which
serves approximately 68 million customers daily in around 119 different countries and have
30,000 restaurants worldwide. McDonald’s headquarter is in Oak Brook Illinois, USA and
company was started as a barbeque restaurant in 1940 by Richard and Maurice McDonald. In
1948, owners of the company reorganized the business to a hamburger stand and thereafter in
1955 businessman Ray Kroc joined the company as the first franchise agent. Ray Kroc
purchased the chain from the McDonald brother and made it grow worldwide.

The corporation itself either operates a McDonald’s restaurant or by a franchisee. McDonald’s

Corporation revenues are obtained from the rent, fees paid by the franchisee, royalties and the
sales from the restaurants operated by McDonald’s Corporation. McDonald’s Corporation had
annual revenues of $28.15 billion in the year 2013 whereas their profits were$5.6 billion.

McDonald’s product line includes selling hamburgers, cheeseburgers, French fries, chicken
items, breakfast items, desserts, milkshakes and soft drinks. Due to changing consumers taste
and to survive in this competitive and ever changing environment, McDonald’s Corporation has
added salads, wraps, fish, fruits and smoothies to its menu lists.

VISION

“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

“McDonald's mission is to be their customers' favorite place and way to eat with
i n s p i r e d p e o p l e w h o d e l i g h t e a c h c u s t o m e r w i t h u n m a t c h e d q u a l i t y,
s e r v i c e , cleanliness and value every time”

HUMAN RESOURCE MANAGEMENT

Human resource management is the management of human resources. It is designed to

maximize employee performance in service of an employer's strategic objectives. HR is
primarily concerned with the management of people within organizations, focusing
on policies and on systems. HR departments are responsible for overseeing employee
benefits design, employee recruitment, training and development, performance appraisal,
and rewarding (e.g., managing pay and benefit systems). HR also concerns itself with
organizational change and industrial relations, that is, the balancing of organizational
practices with requirements arising from collective bargaining and from governmental
laws. It is a business field focused on maximizing employee productivity. Human
Resources professionals manage the human capital of an organization and focus on

8
 implementing policies and processes. They can be specialists focusing in on recruiting,
training, employee relations or benefits. Recruiting specialists are in charge of finding
and hiring top talent. Training and development professionals ensure that employees are
trained and have continuous development. This is done through training programs,
performance evaluations and reward programs. Employee relations deal with concerns of
employees when policies are broken, such as harassment or discrimination. Someone in
benefits develops compensation structures, family leave programs, discounts and other
benefits that employees can get. On the other side of the field are Human Resources
Generalists or Business Partners. These human resources professionals could work in all
areas or be labor relations representatives working with unionized employees.

HUMAN RESOURCE MANAGEMENT IN MC DONALDS

At McDonald's, people are their most important asset. They provide the best employment
experience for their employees in order for McDonald's 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 workers 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”

HRM is useful not only to organization, but the employees working therein, and also the

society at large also find it useful. The objectives can be as under:

1. Organizational Objectives:
HRM is a means to achieve efficiency and effectiveness. It serves other functional areas, so as to

help them to attain efficiency in their operations and attainment of goals to attain efficiency.
Acquiring right man for the right job at right time in right quantity, developing through right

kind of training, utilizing the selected workforce, and maintaining the workforce are the

organizational objectives of HRM. Succession planning is an important issue to be taken up as a

contemporary organizational objective.

2. Functional Objectives:
HRM performs so many functions for other departments. However, it must see that the
facilitation should not cost more than the benefit rendered.

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3. Personal Objectives:
In today’s world there is shortage of requisite talent. Employees are encouraged by competitive

firms to change the jobs. HRM has the responsibility to acquire, develop, utilize, and maintain
employees.

This would be possible only when the HRM helps employees to achieve their personal goals to
get their commitment. Creating work-life balance for the employees is a personal objective.

4. Societal Objectives:
HRM must see that the legal, ethical, and social environmental issues are properly attended to.

Equal opportunity and equal pay for equal work are the legal issues not to be violated. To take

care of farmers (whose land has been acquired for the factory) and tribal’s (who are displaced by
industries and mining companies) are the ethical issues.

HUMAN RESOURCE ACTIVITIES

Human resource management deals with several employee-related activities in small companies.
It is essential that HR managers find talented employees to perform specific jobs and help ensure
that employees are fairly paid and looked after during their tenure. HR management usually
performs a variety of these activities. Some of these activities are:

 Planning
 Recruitment
 Selection
 Training and development
 Performance mangement
 Appraisals
 Compensations

PLANNING
Human resource planning is a process that identifies current and future human resources needs
for an organization to achieve its goals. Human resources planning should serve as a link
between human resources management and the overall strategic plan of an organization. It, thus,
focuses on the basic economic concept of demand and supply in context to the human resource
capacity of the organization. It is the Human resource planning process which helps the
management of the organization in meeting the future demand of human resource in the

10
organization with the supply of the appropriate people in appropriate numbers at the appropriate
time and place.
An HR Planning process simply involves the following four broad steps:

 Current HR Supply: Assessment of the current human resource availability in the

organization is the foremost step in HR Planning. It includes a comprehensive study of
the human resource strength of the organization in terms of numbers, skills, talents,
competencies, qualifications, experience, age, tenures, performance ratings, designations,
grades, compensations, benefits, etc. At this stage, the consultants may conduct extensive
interviews with the managers to understand the critical HR issues they face and
workforce capabilities they consider basic or crucial for various business processes.
 Future HR Demand: Analysis of the future workforce requirements of the business is
the second step in HR Planning. All the known HR variables like attrition, lay-offs,
foreseeable vacancies, retirements, promotions, pre-set transfers, etc. are taken into
consideration while determining future HR demand. Further, certain unknown workforce
variables like competitive factors, resignations, abrupt transfers or dismissals are also
included in the scope of analysis.
 Demand Forecast: Next step is to match the current supply with the future demand of
HR, and create a demand forecast. Here, it is also essential to understand the business
strategy and objectives in the long run so that the workforce demand forecast is such that
it is aligned to the organizational goals.
 HR Sourcing Strategy and Implementation: After reviewing the gaps in the HR supply
and demand, the HR Consulting Firm develops plans to meet these gaps as per the
demand forecast created by them. This may include conducting communication programs
with employees, relocation, talent acquisition, recruitment and outsourcing, talent
management, training and coaching, and revision of policies. The plans are, then,
implemented taking into confidence the mangers so as to make the process of execution
smooth and efficient. Here, it is important to note that all the regulatory and legal
compliances are being followed by the consultants to prevent any untoward situation
coming from the employees.

HUMAN RESOURCE PLANNING AT MCDONALD’S

With the intensive competition in the market place, companies like McDonald are trying to
sustain their market leadership by initiating strategies that adhere to the needs of the business
environment, the company and the employees as well. To achieve the McDonald's goals, human
resource planning is concerned with getting the right people, using them perfectly, and training
and developing them..

''Human Resource Planning (HRP) is the process of ensuring an organization has the correct staff
at the right time, with the right skills and abilities in the right place.''
Like all other businesses, for daily activities carry out McDonald's need the assistance of staff.
All the important number of staff in McDonald's fulfils a key role in its operation. Without
sophisticated technology McDonald's would not be successful, for setting up properly human
beings are responsible.

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If the manager of McDonald's do not select the potential employees in careful way and do not
match against the ability of post that means who are unsuitable, it can create a number of
problem, for example:

 poor productivity level

 no good feeling among staff
 job dissatisfaction
 high absenteeism levels
 customer complains
 dismissal
 replacement

For demand of labor, McDonald's analysis its future plans and estimate the levels of activity
within McDonald's. As a result, they can predict that the organization has right number of
potential employee with right quality. The external labor market is very important for any
organization because of it can make up of potential employees, locally, regionally, who have the
right skills and qualification necessary at any time. For McDonald's, local unemployment figures
are very important who give the indication of the general labor availability required at that time.
Also, Human resource planning of McDonald's includes searching at how labor is organized
within a business or an organization.
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. McDonald’s has been operating since a very long time and by now it has full
information of where it stands in the mind of people. McDonald forecast 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 specialists’ 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.
RECRUITMENT
Recruitment is the process of finding and hiring the best-qualified candidate (from within or
outside of an organization) for a job opening in a timely and cost-effective manner. The
recruitment process includes analyzing the requirements of a job, attracting employees to that
job, screening and selecting applicants, hiring, and integrating the new employee into the
organization. There are two types of recruitments process.

 Internal recruitment

 External recruitment

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Internal Recruitment is a recruitment which takes place within the concern or organization.
Internal sources of recruitment are readily available to an organization. Internal sources are
primarily three - Transfers, promotions and Re-employment of ex-employees. Internal
recruitment may lead to increase in employee’s productivity as their motivation level increases.
It also saves time, money and efforts. But a drawback of internal recruitment is that it refrain the
organization from new blood. Also, not all the manpower requirements can be met through
internal recruitment. Hiring from outside has to be done. Three primary internal sources are:

 Transfers
 Promotions (through Internal Job Postings)
 Re-employment of ex-employees

External Recruitment - External sources of recruitment have to be solicited from outside the
organization. External sources are external to a concern. But it involves lot of time and money.
The external sources of recruitment include - Employment at factory gate, advertisements,
employment exchanges, employment agencies, educational institutes, labor contractors,
recommendations etc.

 Employment at Factory Level: This a source of external recruitment in which

the applications for vacancies are presented on bulletin boards outside the Factory
or at the Gate. This kind of recruitment is applicable generally where factory
workers are to be appointed.
 Advertisement: It is an external source which has got an important place in
recruitment procedure. The biggest advantage of advertisement is that it covers a
wide area of market and scattered applicants can get information from
advertisements. Medium used is Newspapers and Television.
 Employment Exchanges: There are certain Employment exchanges which are
run by government. Most of the government undertakings and concerns employ
people through such exchanges. Now-a-days recruitment in government agencies
has become compulsory through employment exchange.
 Employment Agencies: There are certain professional organizations which look
towards recruitment and employment of people, i.e. these private agencies run by
private individuals supply required manpower to needy concerns.
 Educational Institutions: There are certain professional Institutions which serve
as an external source for recruiting fresh graduates from these institutes. This kind
of recruitment done through such educational institutions is called as Campus
Recruitment. They have a special recruitment cell which helps in providing jobs
to fresh candidates.
 Recommendations: There are certain people who have experience in a particular
area. They enjoy goodwill and a stand in the company. There are certain
vacancies which are filled by recommendations of such people. The biggest
drawback of this source is that the company has to rely totally on such people
which can later on prove to be inefficient.

13
RECRUITMENT AT MCDONALDS
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. As we know that
McDonald's is the biggest family restaurants business in the world. To provide the best family
restaurants experience by far is McDonald's vision. To achieve this we put people at the centre of
everything we do and that goes for our employee as much as our customer. In McDonald’s the
recruiting and selection process starts from the applications submitted by the individuals. They
provide their CVs along with the applications. The applications and CVs are screened out on the
basis of
 Merits
 Institutes
 Experience
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 accepted CVs). Then the H.R manager
takes a test based on:
 English comprehension
 Basic maths
 I.Q
 Some questions about the particular job, for which the applicants have applied.
In McDonald’s recruitment is done on the demand of the organization. There are two types of
recruitment that is done in McDonald’s:
1. Internal Recruitment 2. External Recruitment
Internal Recruitment: McDonald’s do internal recruiting that is, 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 performance and qualifications. Any employee at a reasonable
post can submit his/her application for the job. On yearly basis, the summary of the employees
are maintained in the form of records, which gives the organization maximum chance in
selecting the potential employee as the head of a department. The H.R manager and the head of a
specific department interview the selected employee.
External Recruitment: McDonald’s often go for external recruitment. They mostly try to go for
internal recruitment or internal promotion of the employee but incase an employee leaves the
organization, the organization uses other means such as internet portals or newspapers to
advertise a vacant position. The criteria required for employment in McDonald’s are:
 Appearance and grooming
 Professional qualifications
 Experience and knowledge
 Communication skills in English

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 Leadership skills
 Potential for growth
 Reasoning and judgment
 Computer skills

SELECTION

Selection is concerned with picking up the right candidates from a pool of applicants.
Selection on the other hand is negative in its application in as much as it seeks to eliminate as
many unqualified applicants as possible in order to identify the right candidates.

Process / steps in selection:

 Preliminary Interview: The purpose of preliminary interviews is basically to eliminate

unqualified applications based on information supplied in application forms. The basic
objective is to reject misfits. On the other hands preliminary interviews is often called a
courtesy interview and is a good public relations exercise.
 Selection Tests: Jobseekers who past the preliminary interviews are called for tests.
There are various types of tests conducted depending upon the jobs and the company.
These tests can be Aptitude Tests, Personality Tests, and Ability Tests and are conducted
to judge how well an individual can perform tasks related to the job. Besides this there
are some other tests also like Interest Tests (activity preferences), Graphology Test
(Handwriting), Medical Tests, Psychometric Tests etc.
 Employment Interview: The next step in selection is employment interview. Here
interview is a formal and in-depth conversation between applicant’s acceptability. It is
considered to be an excellent selection device. Interviews can be One-to-One, Panel
Interview, or Sequential Interviews. Besides there can be Structured and Unstructured
interviews, Behavioral Interviews, Stress Interviews.
 Reference & Background Checks: Reference checks and background checks are
conducted to verify the information provided by the candidates. Reference checks can be
through formal letters, telephone conversations. However it is merely a formality and
selections decisions are seldom affected by it.

15
  Selection Decision: After obtaining all the information, the most critical step is the
selection decision is to be made. The final decision has to be made out of applicants who
have passed preliminary interviews, tests, final interviews and reference checks. The
views of line managers are considered generally because it is the line manager who is
responsible for the performance of the new employee.
 Physical Examination: After the selection decision is made, the candidate is required to
undergo a physical fitness test. A job offer is often contingent upon the candidate passing
the physical examination.
 Job Offer: The next step in selection process is job offer to those applicants who have
crossed all the previous hurdles. It is made by way of letter of appointment.
SELECTION PROCESS AT MCDONALD’S

With the pool of applicants, the next step after recruitment is selecting the right person for the
right job. This usually means whittling down the applicants pool by using the screening tools.

In McDonald’s, the selection process involves the following steps:

 Initial screening: In initial screening McDonald collects the application forms of

candidates from their CVs and also by mail and fax. Then they choose those applications
which are according to their job requirements and call those candidates for further
process
 Employment test: 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 to have the utmost guarantee that the people they are hiring are perfect from every
point of view. The tests are designed to judge the candidate according to his cognitive
and mental abilities. McDonald’s take tests as far as their candidates are concerned, to
check their full abilities. The tests are of different nature such as:

a. Test of Cognitive Abilities: These kinds of tests include IQ, general and
intellectual abilities. These tests are generally conducted while recruiting
executives and supervisors.
b. Motor and Physical Abilities: These tests include checking the performance of
the employee usually working on the machines in operation department such as
kitchen of McDonald’s to check their reflexes.
c. Measuring personality’s interests: Involves taking into consideration the
personal interests and motivations of the person in the field.

 Interviews: At McDonald’s, after the managers make the selection, the phase of
interviewing the employee comes. The interview is taken from the employees in two
ways.
a. Top level interviews
b. Low level interviews

16
 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 head of the
departments takes the interviews of candidates for the associate’s heads, officers,
managers and assistant manager’s posts. After the selection is made the general manager
approves the candidate. 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 is appointed the investigations and

reference checks are done by the HR manager. In McDonald’s, reference checking is
referred to as revising the ‘Job History’ which contains
a. Job applied for i.e. the experience of the employee for the job.
b. Relevant qualifications
c. Salary

After conducting the interview and all relevant investigation they employee is called to
join the job.

TRAINING AND DEVELOPMENT

Training refers to the process of imparting specific skills. An employee undergoing training is
presumed to have had some formal education. No training program is complete without an
element of education. Hence we can say that Training is offered to operatives. Development
means those learning opportunities designed to help employees to grow. Development is not
primarily skills oriented. Instead it provides the general knowledge and attitudes, which will be
helpful to employers in higher positions. Efforts towards development often depend on personal
drive and ambition. Development activities such as those supplied by management development
programs are generally voluntary in nature. Development provides knowledge about business
environment, management principles and techniques, human relations, specific industry analysis
and the like is useful for better management of a company.

TRAINING AND DEVELOPMENT AT MCDONALDS

Each restaurant of McDonald's promises to deliver heist standard of service and cleanliness to
customers. Management of McDonald’s believed that well trained employee can deliver these
standards. McDonald's provides comprehensive training program for all employees. It allows the
merit based promotion. Welcome meeting is the first stage of training. At restaurant crew trainers
work shoulder to shoulder with trainees while they learn the operational skill necessary for
running each of the 11 work starting in each restaurant, from the front counter to the grill area.
All employees are developed by the effective training so that they can serve the customers
quickly, operate equipments and learn McDonald's operational procedure. Most of the training at
McDonald's is floor based or on job training because this procedure is very effective to develop
them. People learn more and more likely retain information if they physically. McDonald's
provides an initial training periods for all new employee, here every employee learn how they
can develop their skills. Also it has effective crew development program. Also it has e-learning

17
system for all employees. This company provides management develop program which are
divided into four:
a) Shift Management
b) System Management
c) Restaurant Leadership
d) Business
Most departments in the regional office offer restaurant managers opportunities to second to
work in the regional office. This gives experienced manager the opportunity to develop and learn
new skills.
McDonald's constant success is constructed on the highest principles of quality, delivery of
services and cleanliness to customer in each of the McDonald's restaurants. These standards are
achieved because of the well trained crew member and also well trained manager. The policy of
McDonald's that provide the career opportunities that allows the workers to improve and develop
their full potential. This policy program is for both crew and operation management, and a career
advancement that enables a 'first job' for the progression of the employees to the senior
management position through merit based promotions.
Around 55,000 employees are trained in McDonald's every year. McDonald's spends around £10
million over ongoing employees training every year for providing people with valuable skill.
McDonald's work experience is a foundation for future employability, mostly as the labor market
continues to evolve. As there is increase in the demand of skilled employees, a job which offers
an on-going training with a leading organization is very best career investment.

PERFORMANCE MANAGEMENT
Employees are the important resources of the company. They insures the collaboration of
financial, industrial & resources so that organization able to function. Today some of the
experienced managers think that the financial reward cannot stay the only type of an employee
encouragement or inspiration. There is need of viewing the needs of employees as entity that
leads to the search of the non-financial incentives. There are many non-financial incentives
connected to employee's satisfaction of need for example employee's participation in decision
making, self-fulfillment, personal growth and others.
Full use of human resource by the organization is the most important advantage which allows the
organization to capture the position in the global market.
PERFORMANCE MANAGEMENT IN MCDONALD’S
McDonald's has effective motivation system to improve the employees' performance. At
McDonald's restaurant performance management are operated by restaurant manager. In each
restaurant manager is responsible for monitoring employees' performance. This process is
continues throughout the year, restaurant manager select employee of the month according to
employees' performance within a month. After that, employee of the month is awarded by
restaurant manager. And he/she is given $ 25 reward. And manager selects employee of the
quarter. Then employee progress to operation manager. Moreover, manager arranges CSO
18
(customer satisfaction opportunity) competition among different teams within the restaurant and
among restaurant as well for monitoring performance. Furthermore, overall performance of
restaurant is monitored by GAP buster on monthly basis. Here, GAP buster is a person who has
good knowledge in the field of customer experienced management. In each month GAP buster
visits restaurant as a customer to check quality of food, how friendly the employee, accuracy of
service, service time and cleanliness. According to these points Gap buster scores to the
restaurant.
This process is very effective because all employees within this organization try to do best to be
employee of the month and managers are always monitor the performance of staff to get 100
percent score from GAP buster. Being a Crew Member of McDonald's, I know that manager and
supervisor always communicate with all employees to know about their needs. In restaurant we
work together as a team and manager always gives hands to any employee.
APPRAISALS
Appraisals are judgments of the characteristics, traits and performance of others. On the basis of
these judgments we assess the worth or value of others and identify what is good or bad. In
industry performance appraisal is a systematic evaluation of employees by supervisors.
Employees also wish to know their position in the organization. Appraisals are essential for
making many administrative decisions: selection, training, promotion, transfer, wage and salary
administration etc. Besides they aid in personnel research.

Performance Appraisal thus is a systematic and objective way of judging the relative worth of
ability of an employee in performing his task. Performance appraisal helps to identify those who
are performing their assigned tasks well and those who are not and the reasons for such
performance.

APPRAISALS IN MCDONALD’S

The appraisal of each employee is at McDonald’s is directly or indirectly dependent on the

individual performance. The company applies a performance evaluation criterion that involves
assessment of employee qualities and behaviors such as honesty and trustworthiness, punctuality,
timely accomplishment of tasks and goals, and productivity (HR, 2007). All employees in the
organization receive a formal performance appraisal at least once a year. The appraisal is
provided to motivate them and encourage them improve their performance.

COMPENSATIONS
Compensation is referred to as money and other benefits received by an employee for providing
services to his employer. Money and benefits received may be in different forms –
base compensation in money form and various benefits, which may be associated with
employees services to the to the employer like provident fund, gratuity insurance scheme and
any other payment which the employee receives or benefits he enjoys in lieu of such payment.

19
 “Compensation includes direct cash payments, indirect payments in the form of employees to
strive for higher levels of productivity”

COMPENSATION IN MCDONALD’S
McDonald’s provides immense benefits and compensation to all its employees. It provides
worthwhile opportunities to all employees to develop and advance over many years. This helps
the company appeal, retain and engage skilled people who could deliver solid performance and
help McDonald’s achieve its mission and goals (Ulrich, 1996). McDonald’s benefit program is
designed to attract, energize, reward and entertain talented people who will produce superior
business results and can enhance their leadership position. The welfares and compensation
offered by McDonald’s include:

1. Medical care
2. Dental care
3. Profit division
4. Sabbatical programs (usually 6-8 weeks leave per annum)
5. Employee and family life insurance cover
6. Incentives
7. Recognition programs

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 DESCRIPTION: Job description includes basic job-related data that is useful to advertise a
specific job and attract a pool of talent. It includes information such as job title, job location, reporting to
and of employees, job summary, nature and objectives of a job, tasks and duties to be performed,
working conditions, machines, tools and equipments to be used by a prospective worker and hazards
involved in it.
Purpose of Job Description

 The main purpose of job description is to collect job-related data in order to advertise for
a particular job. It helps in attracting, targeting, recruiting and selecting the right
candidate for the right job.
 It is done to determine what needs to be delivered in a particular job. It clarifies what
employees are supposed to do if selected for that particular job opening.
 It gives recruiting staff a clear view what kind of candidate is required by a particular
department or division to perform a specific task or job.
 It also clarifies who will report to whom.
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 MCDONALD’S JOB DESCRIPTION:

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
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

JOB SPECIFICATION

Also known as employee specifications, a job specification is a written statement of educational

qualifications, specific qualities, level of experience, physical, emotional, technical and
communication skills required to perform a job, responsibilities involved in a job and other
unusual sensory demands. It also includes general health, mental health, intelligence, aptitude,
memory, judgment, leadership skills, emotional ability, adaptability, flexibility, values and
ethics, manners and creativity, etc.

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Purpose of Job Specification

 Described on the basis of job description, job specification helps candidates analyze
whether are eligible to apply for a particular job vacancy or not.
 It helps recruiting team of an organization understand what level of qualifications,
qualities and set of characteristics should be present in a candidate to make him or her
eligible for the job opening.
 Job Specification gives detailed information about any job including job responsibilities,
desired technical and physical skills, conversational ability and much more.
 It helps in selecting the most appropriate candidate for a particular job.

MCDONALD’S JOB SPECIFICATION

In McDonalds the Job specification is written under heading known as "Profile" and
"Competency Level".

OFFICE JOBS
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 LEVEL

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.

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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
Age: 24 years maximum
Gender: Females only

CREW MEMBER
Age: 18-25 years
Gender: Male or Female
Job description and job specification are two integral parts of job analysis. They define a job
fully and guide both employer and employee on how to go about the whole process of
recruitment and selection. Both data sets are extremely relevant for creating a right fit between
job and talent, evaluate performance.

CONCLUSION

McDonald’s now a day is one of the fastest growing corporation and this is due to the reason of
proper management of their human resources. This clearly shows that the corporation is on the
right track and they have been able to keep the motivation levels of their employees high. This
has been done by proper reward schemes for the employees based on their performances. Proper
training is provided to the newcomer making it much easier for new employee to pick up and to
get comfortable with job quickly.

However, if McDonald’s Corporation continuously strives to further improve its HRM strategies
then McDonald can continue to grow at much more faster pace. Hence it can be concluded the
HRM strategies of McDonald’s Corporation is in line with their business model and growth
strategies and this can be verified from their success up to this date.

RECOMMENDATION

No doubt McDonald’s is a huge giant size organization but it also needs improvements which
are:

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 Job enlargement and job enrichment should be applied for the 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

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