Human Resource Practices In

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BY:SHILPA SARNAIK

TYBMS 615

HUMAN RESOURCE PRACTICES INMCDONALDS

The human resource department at McDonalds is working as a separate department and holds an important place in almost all major operations of the organization but all managers acrossMcDonald's are givenresponsibilities for selecting, motivating, developing and evaluating employees so that they can have a share inthe organizations affairs. All managers therefore take on human resourceresponsibilities. Employees are themost important resources in McDonald's, particularly in creating a competitive edge.

FUNCTIONS OF HR IN MCDONALDSThe functions of HRM in McDonalds are:POLICY-MAKING - Establishing major policies that cover the place and importance of people in McDonald's.WELFARE - Concerned with looking after people at McDonald's and their needs.SUPPORTIVE Co-operative and helping other managers in their work.BARGAINING AND NEGOTIATING - Acting as an intermediary between different groupsand interests.

ADMINISTRATIVE Responsible for pay rate system and supervision implementation of health and safety laws, etc.

RECRUITMENT

Recruitment is the first part of the process of filling a vacancy. It includes examination of the vacancy, theconsideration of sources of suitable candidates, making contact with those candidates,attracting application

from them, short listening, interviews and finally induction of the selected candidateswithin the budget of thedepartment company. In McDonalds recruitment process isdecen tr aliz ed. Everybranch of McDonalds isindependent to hire the employees. Usually at McDonalds employees are hired in a formof badge. Also thetransformations of employees within the franchises of McDonalds took place forrecruiting the employees. Atypical McDonalds restaurant can employ about 60 people who include the both

managerial and floor- basedstaff.


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RECRITMENT METHODS IN MCDONANLDSMcDonalds follow the two basic types of recruitment such as:

Internal Recruitment External Recruitment

INTERNAL RECRUITMENTMcDonalds uses the following two basic methods for internal recruiting

Job Positioning Succession Planning

JOB POSITIONING

In Job positioning McDonalds select candidates from inside by considering their past performance.

MCDONALDS publicize their open jobs on their site ,where their employees could applyfor the job they alsopublicize it in their restaurants on Notice Boards. So that the working employees couldbe informed from thevacant position and apply.

SUCCESSION PLANNINGFor the executive posts McDonalds follow a succession planning technique where theyrecruit their managers

or senior employees to executive level on the basis of their performance.EXTERNAL RECRUITMENT

McDonalds often goes for external recruitment thou gh they mostly prefer internalrecruitment or internalpromotion of the employees to the higher posts.External recruitment of McDonalds involves:

Recruiting via internet

Advertising

College Recruiting

RECRUITING VIA INTERNET

Now a Days Recruiting via Internet is becoming very common. McDonalds has its ownsite where they

publicize for the jobs and offer people to send their CVs through online process andoften recruit employees


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from their.ADVERTISINGAdvertising is the most used method for recruitment. McDonalds approaches theNewspaper or a magazine

adds mostly to invite employees for jobs.COLLEGE RECRUITINGMcDonalds follow the most common method of college recruiting known asInter ns hipsbecause many floorbase employees usually join McDonalds for internship. Here they have one advantagethat theydont have to pay them much and their workforce need is also fulfilled for a temporary period of time.

SELECTION

The selection process of McDonalds involves the following factors:

Initial screening

Testing

Interviewing

Background investigation

INITIAL SCREENINGIn initial screening McDonalds collects the application forms of candidates from theirWebs ite onlineand also by Mail or Fax and than they choose those applications which are according totheir jobrequirements and call those candidates for further process.

TESTING

TESTING EMPLOYEES IN MCDONALDSMcDonalds take the following tests to check the abilities, knowledge and nature of work of employees.MCDONALDS TESTING FACTORSMcDonalds conduct tests to know the following factors:

Motor& physical skills

Personality( attitude test)

Cognitive abilities (Aptitude and Intelligence test)


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.TESTING PROCEDUREMcDonalds always want a multi-skilled worker or employee who could work efficientlyat any level. For that when they hire employees they test according to their above mentioned criteria that the

employee should belittle or more skilled to work in any area. In McDonalds employees are tested in twobasic ways first throughsome ORAL OR WRITTEN TESTS they are judged and then they are allowed to perform aPRACTICALWORK, where the McDonalds managers could evaluate them more accurately.MCDONALDS TESTING METHODSMcDonalds took following tests of employees:

Physical fitness test

Attitude test

Aptitude test

Case study test method

On-the-Job evaluation test

INTERVIEWNG

All candidates after formal testing are called for the final interview. This is where thefinal and overallassessment of the candidate takes place and selection decisions are made.

TRAINING AND DEVELOPMENT

At McDonalds, a job is never just a job; employees know that working at McDonaldsprovides them with awealth of knowledge, experience, skills and above all a true fun work Environment.McDonalds follow a highlystructured training process. Employees in McDonalds are trained at all levels. They aretrained to work on floorbase area to back area. McDonald's employee training programs are based on thecompany's core principlessuch as:

Quality


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Service

Cleanliness

Value

TRAINING METHODS IN MCDONALDS

The most used training methods that McDonalds follow are given as:

On-The-Job Training

Job Rotation

Lectures

Audio-visual based training

LECTURESThe first stage of training is at the Welcome Meetings. These are usually arranged in aTraining Centre orRoom. These lectures set out the company's standards and expectations for the newemployees. Where,employees are introduced with a complete description about the job, and a guidelinethat how to work and what are the job requirements and procedures. A verbal outline is given to the employees.

ON-THE-JOB TRAINING

The majority of training is floor based, or "On-The-Job" training because people learnmore and are morelikely to retain information if they are able to practice as they learn.All new employees have an initial training period. Here they are shown the basics andallowed to develop theirskills to a level where they are competent in each area within the restaurant. They willalso attend classroom-based training sessions where they will complete workbooks for quality, service andcleanliness

JOB ROTATION

McDonalds also uses the most known type of on the job training Job Rotation. It isdone within the specific


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department so that the employee becomes familiar with all level of jobs.AUDIO-VISUAL BASED TRAININGFor the new trainees McDonalds also provide them with DVDs, films, video or audiotapes related to the

operational or functional work of the organization.EVALUATION OF TRAINING

McDonalds evaluate its training program through On-The-Job Behavior that after thetraining session the behavior of employees are changed or not. They match up theperformance behavior of employees before training and after training like, the behaviorof a crew member is more courteous to customers.

DEVELOPMENT CAREER MANAGEMNTAt McDonalds there are different management development plans. McDonalds hasestablished a development program for managers, employees and also for the workers at lower level. It includes:Management development plan for employees at all levels.

McDonalds provide facilities to employees in their career planning.

JOB ROTATIONIn job rotation process the managers are allowed to work in different department orsub-department at everylevel to learn more about their job and identify their strong and weak points.

PERFORMANCE APPRAISELPerformance appraisal compares each employees actual performance with his or herperformance standard.

PARAMETERS OF PERFORMANCE APPRAISALThe performance appraisal is based on the following some of the parameters:

Ethics

General Knowledge/ IQ,

Confidence

Motivation


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Team Work

Communication Skill

COMPENSATION AND BENEFITS PROGRAMSCOMPENSATION METHOD

McDonald uses Broad banding trend of compensation, in this trend wide range of jobsand salary levels are represented by Bands. So the employee, whose job falls on one of these grades, gives the pay range listed onthat grade and determines his or her salary. McDonalds has this system of compensation because, broadbanding allows for flexibility in terms of pay, growth and movement.

MEDICAL AND HOSPITAL FACILITIES:

It includes the some percent of compensation in the fee of hospital.

FREE FURNISHING ON HAVING NEW HOME (MANAGERIAL LEVEL): T he employees at most executive posts are given new and fully furnished home.

PROVIDENT FUND (ESOP):Provident fund is given to employees as according to the companies policy mostlyorganizations cut 5%from the salary of the employee and he/she could take that provident fund at any time they demand.CHOICE TO GET NEW CAR AFTER FIVE YEARS (COMPANY CAR PROGRAM):

BENEFIT PROGRAMSHEALTH AND PROTECTION: Health and protection includes the following benefits:

Medical AidPension or Provident Fund

Disability Cover

Funeral Cover

Accidental death & dismemberment (AD&D)

PAY AND REWARDS: McDonalds pay and reward method is fair which is as given:

Highly competitive salary packages


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Performance based bonus Employee of the Month program Annual e mployee recognition awards Opportunity for local and/or international training at all levels

STEPS TAKEN BY MCDONALDS TO MOTIVATE ITS EMPLOYEES McDonalds should follow these steps to keep their morale and motivation level

high: Offer the insurance for employees Increase the wage rate

Give incentives to their employees on different events

Arrange parties just for McDonalds staff once in a month

HEALTH SAFETY IN MCDONALDS

McDonalds has a safe environment regarding to health, there are no such serious healthsafety threats inMcDonalds but they have developed a systematic health and safety program for thoseemployees specially whowork in production lobby.

Such factors could be a health and safety problem for McDonalds employees:

High temperature

Hygiene

Smoking

Infectious disease

MCDONALDS HEALTH SAFETY SYSTEMMcDonalds keeping in view the above factors take the following steps ahead to prevent their employees fromAny health hazard:

VENTILATION SYSTEM INSPECTION NO SMOKING RULE INFECTIOUS DISEASES SAFETY AND SECURITY IN MCDONALDS


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Human Resource Practices In

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