mcdonald's hrm case study

McDonalds Human Resources: What You Need to Know

What's Inside?

The position of human resources in mcdonalds structure, mcdonalds human resources philosophy , learning and development programs, recruitment and selection, application review, video or phone interviews, onsite visit, pre-employment screening, notification, competitive pay and benefits, resources to get the job done.

In 2021, McDonalds was recognized as the world's largest fast-food chain. Statistically, it served 69 million customers in more than 100 countries . The human resources division at McDonalds played a critical role in that success. 

Commentators attribute the success of McDonalds to several factors . These include its innovative business strategy, focus on client satisfaction, and capacity for growth. However, one of the most critical components of McDonalds success is its workforce; for this reason, it is necessary to examine McDonalds human resources practices .

A Glassdoor review found a 3.5-star overall rating on a scale of 5 for McDonalds human resources practices. Additionally, 6 in 10 employees said they would suggest McDonalds as a place to work. These numbers imply that McDonalds workers are satisfied with their jobs. Perhaps one of the main factors contributing to McDonalds great success.

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McDonalds human resources plans, implements, and develops strategies for hiring, training , assessing, and rewarding employees. The primary objective is to provide the company with a competitive edge.

McDonalds human resources is one of the most recognized in its industry. Its responsibility is to ensure that the right people are in the right places with the right abilities. It also involves connecting the right persons with the correct positions at the right time and cost.

Global McDonald's operations are developed and aligned with its plan-to-win operational strategy. McDonalds human resources also function to feed into this overall strategy. The core tenet of this strategy is the requirement to deliver an outstanding client experience.

The plan-to-win strategy focuses on products, people, place, price, and promotion ( 5Ps ). With the combination of these 5Ps, McDonalds believes that it can achieve its mission of continuous improvement of customer experience. McDonald's human resource strategy comprises preparation, selection, education, performance, remuneration, and staff maintenance.

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The corporate strategy of McDonalds aligns with its human resources management. This aligns with the organization's adaptable and dynamic structure, especially the role of human resources within the McDonalds structure. McDonalds organizational structure is functional and focuses on different business components and functions as the basis for determining the relationships and reporting lines between these distinct components.

A snippet from McDonald's executive team organizational chart , which shows the role of human resources, is shown below.

Heidi Capozzi is the Executive Vice President and Global Chief People Officer of McDonalds, responsible for managing the company's global human resources operations. According to a recent analysis of the HR reporting structure, 13% of HR directors at different organizations report directly to the CEO . This is the case for McDonalds human resources. The findings probably demonstrate how much employers value human resources in today's fast-paced workplace.

At McDonalds, human resources practices are given more prominence and significance. Studies have indicated that when HR reports directly to the CEO, the CEO values HR's contribution to the firm and sees it as a strategic function. As a result, HR might become more prominent and essential within the organization. 

While McDonald's HR practices emphasize a structured approach with direct reporting to the CEO, Burger King’s HR practices offer another perspective on managing human resources in the fast-food industry, providing valuable insights into how different industry leaders approach workforce management

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‘We're not just a hamburger company serving people; we're a people company serving hamburgers.’- McDonalds . 

McDonald’s human resources philosophy promotes a positive work environment, prioritizes employee satisfaction, and offers competitive wages and benefits . The company’s approach to human resources has been vital in maintaining a satisfied workforce that delivers both quality and quantity of work. McDonalds human resources vision is to be the best employer in each community around the world. Being the best means opportunities, training development , satisfaction, rewards, and recognition.

The company has constantly reminded its employees that it is committed to their well-being. A common people promise at McDonalds is that - To all our present and future employees, we'd like you to know that we are committed. “We Value You, Your Growth, and Your Contributions."

To address internal and external variables, HRM practitioners at McDonald's have used a variety of solutions at both the operational and strategic levels. These include recruitment and onboarding techniques , employee engagement programs, e-enabling HR processes, ethical sourcing policies, and global HR strategies. 

The company's HR technology trends include staff involvement and connection through mobile applications and social media platforms and training and assessment using digital technologies like VR and analytics.

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‘Teach skills and values that last for a lifetime.’

McDonald's provides a range of training and development opportunities. These aim to improve staff members' abilities and expertise and support their professional development and the business's success. McDonald’s human resources uses a blended learning approach to apply training programs. These methods include the following:

McTalent Development Program is a fast-track development program for externally hired talents to join the Store Management Team. It provides tailor-made training for participants to advance to restaurant general managers and mid-managers rapidly.

The Star Competition is an iconic employee event with training, learning, and fun. It is a platform for participants to show their consistent training results and team spirit with rewards and recognition for top performers.

Classroom training is an interactive event with clear learning objectives. The training is held in or out of the restaurant and guided by professional trainers for effective knowledge transfer. Activities include webinar broadcast, capstone course, restaurant experience , case study, visits and tours, online assessment, etc.

On-the-job coaching and digital learning . The approach enables participants to begin their self-learning journey and work independently to acquire critical operational knowledge and standards while providing the participant with the chance to work shoulder-to-shoulder with a coach. This builds practical restaurant skills and demonstrates how the concepts work in a working environment.

Hamburger University is a critical component of McDonalds training and development program. It instructs high-potential restaurant managers, mid-managers, and owner-operators in restaurant management. Hamburger University students take courses about restaurant operations, leadership skills , customer service, operations, and procedures. The skills learned from the university are a lifetime gain for employees. 

The foundation of the McDonald’s training system is providing training when and where it is needed. Team members at McDonald's can become proficient and focused on the particular procedures and policies of the system through practical training. A portion of the staff will continue to work at the restaurant as vital parts of the team, while others may choose to go into management. Whether in an entry-level position or throughout a career, McDonald's training offers life skills that may be applied to various scenarios.

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McDonalds follows a specific recruitment process for most of its locations. However, some places might have their own unique hiring process. Generally, the recruitment and selection at McDonalds follows the process explained in this section, adapted from the McDonalds website . 

For the majority of positions, basic eligibility requirements apply. These include being at least 15 years old, having the ability to multitask, excellent communication skills, attentiveness, and a collaborative attitude. But, depending on the position, specific requirements could change; therefore, reading and comprehending the job description is critical before applying. Usually taking an hour or so, the application procedure requires applicants to submit their availability, employment history, and contact information. A 'personality' test is also given to evaluate attributes necessary for the position.

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Once submitted, the applications undergo a review process by hiring managers . This assessment includes an examination of the answers to the personality test. Candidates whose qualifications and personalities align with the company's needs are then scheduled for an interview, either online, via phone, or in person.

Regardless of the interview format, meticulous preparation is crucial. Video interview tips are beneficial for those scheduled for online interviews. In contrast, phone interview preparation closely mirrors video interviews, with the main distinction being the absence of a webcam setup.

Candidates invited for in-person interviews should arrive punctually and well-prepared, bringing essential documents such as identification and social security cards, along with a resume. Though some documents may not be needed during the interview, their presence demonstrates organizational skills and quick thinking.

McDonald's conducts criminal and educational background checks and standard procedures for potential hires. Although pre-employment drug and alcohol testing is not routine, the company retains the right to administer them under specific circumstances, such as suspicion of impairment, leading to potential disciplinary action.

McDonalds gives job offers to those who complete the interview process and pre-employment screening. During the initial phone call, discussions about availability and scheduling an official reporting date occur. Depending on the candidate's experience level, the initial weeks may involve training.

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‘Pay Competitively’

To draw and keep talent across the board, McDonalds offers competitive pay that is appropriate for the role held by a Company employee. The company assesses competitive wage data and market trends to establish acceptable wage ranges and guarantee compliance with all relevant wage and hour legislation.

According to review aggregator Glassdoor , the robust benefits package at McDonald's includes insurance, health and wellness coverage, vacation and time off, and financial and retirement benefits. Overall, the pay and benefits were rated 3-star by US employees via Glassdoor. 

Competitive - Pay opportunities are designed to attract, engage, and motivate personnel by matching the external worth of a position. McDonalds routinely assesses pay rates' competitiveness in comparison to peer organizations that match the company size, scale, performance requirements, and talent pool.

Non-Discriminatory - Company employees are compensated at a level commensurate with their role, responsibility, impact, location, experience, knowledge, skills and performance, irrespective of gender, race, ethnicity or any other similar protected personal characteristics. This is backed by the company’s Diversity, Equity, and Inclusion (DEI) policy .

The McDonalds compensation philosophy goes beyond mere payment. It is designed to ignite exceptional performance, celebrate achievements, and shape behaviours that embody company values. McDonalds believes in clear communication so that pay programs are transparently explained through regular updates and a focus on simplicity. This ensures that every employee understands the link between their efforts and rewards. Furthermore, the company operates with the utmost integrity, adhering to all relevant legal and regulatory guidelines to build trust and foster a responsible work environment.

‘Employees need fundamental resources to serve customers’

McDonald's empowers its employees to shine with the tools and support they need to excel. From well-equipped kitchens and training programs to flexible work schedules, McDonald’s human resources fosters a work environment prioritizing productivity and well-being. This recipe for success ensures happy employees and, ultimately, satisfied customers.

McDonald's human resources fuels crew success with ample resources: strategically staffed restaurants, well-equipped kitchens, comprehensive training, and flexible scheduling. This empowered workforce tackles every order confidently, crafting consistent meals and radiating positive vibes, ultimately resulting in satisfied customers and a thriving environment for all.

It can be concluded that McDonalds human resources has implemented several initiatives to improve the performance of the employees, the organizational culture, and the engagement of the employees with the organization. Drawing lessons from the McDonalds HR framework for improved organizational outcomes is crucial.

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McDonalds Human Resource Management Case Study

Introduction.

McDonald’s is the leading foodservice retailer around the world with about 2.6 million people the trust the company for their services and products. With more than 30,000 restaurants around the world, Mcdonald is serving millions of customers with top-quality fast foods. MacDonald’s has started with the fast-food restaurant business in the year 1954 in America. Now, having services in about 118 countries, human resource management plays a great role in making a company with huge success.

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Here in this case study, we are going to talk about the achievement of Mcdonald’s in human resource management, planning, training and development, and the performance of its employees. All the aspects of Mcdonald’s HRM will be provided with their objectives, goals, activities, and models that made them a successful business company.

Human Resource Management

Human resource management is the department of employment management in the company committed to achieving a competitive advantage with the help of planning, implementation, and development of strategies for the recruitment, training, evaluating, rewarding of the employees within the workforce of the company. The human resource department of any organization plays a huge role to connect the goals and objectives of the company with the quality of the workforce.

Macdonald has one of the best human resource departments responsible for the right people, right jobs, right time and right cost of the company and meeting the right skills of the employees in the right place. Human resources at MacDonald’s is also responsible to evaluate the employee’s performance, safety, benefits, motivation, and training for the ever-increasing organization development.

Recruitment and Selection in McDonald’s

Mcdonald’s recruitment focuses on the quality of people, trying to keep up with emerging international and national markets. McDonald’s is a search firm where they do not consider sample surveys to fill the position. With the right talent, your company can achieve great results and achieve better growth in its business.

As a result of hosting games over its net sites or boomers that look out the web of Mcdonald’s career centre they will be directly facing benefits available like running interviews via video calls and confirming some factors during face-to-face interviews followed with a job offer.

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McDonald’s Objectives of recruitment and selection

Mcdonald advertises their job vacancies on their website and by connecting with other online job-seeking websites. They use their own personal department for the recruitment of the talented person in order to ensure their objectives of recruitment and selection which includes

• Identifying the right candidate for the job post.
• Keeping the cost of the selection low
• Ensuring the skills and qualities must be met and developing the process for the identification of them in the candidate.
• Making sure that candidate is highly motivated to want the job and identifying their capacity to stay for the job role provided
• To make sure that recruitment and selection practices come out as effectively as possible.

Now, let’s take a look at the achievement of Mcdonald’s in the HRM activity of recruitment and selection.

McDonald’s Achievement in Recruitment and Selection

As the other organizations do the recruitment throughout the year, McDonald’s also does the same.

McDonald’s recruits their managers and assistants internally rather than externally as the other organizations because it makes the process easier and only less training would be required as the candidate is very well aware of the job role.

To be more aware of the job roles and posts, HR staff of the McDonald prepa\res descriptive job description which describes the job title, department, location, responsibilities, purpose, and job duties.

McDonald’s promotes 50% of their salaried managers within the company.

In the selection process, McDonald’s uses an application form that mentions the questions to get an idea of applicant qualification, knowledge, skills, and experience.

Since the interview is the most important part of the selection of the employees in the company, therefore, McDonald short-listed their potential employees after the interview has been done. The process of interview for Mcdonald’s starts from conducting the process with the area manager or restaurant manager at the nearest branch.

McDonald’s believes in conducting face-to-face interviews where interviewers can assess the behavior, confidence, and capabilities of the applicants and how they come across as a person. Therefore, this selection and rejection process is carried out until the right numbers are filled the vacancies with the wanted quality. Also, McDonald’s arrange an induction for a new employee that can be valued for the long term. However, the induction process begins even before the candidate is offered the job.

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Training and Development of McDonald’s

The skills training of the selected employees is the first towards the training process. In this, the employee gets the basic knowledge of the job role for further development. The ongoing training programs help in making economical employee and gives an advanced level of knowledge about the job. This process of training keeps an employee up to date on their roles and responsibilities and help to meet the demand of the business. Therefore, it is important to get insight of Mcdonald’s training and development programs in order to achieve 100% customer satisfaction. But, let’s first see the what objectives HR team of McDonalds carry out in the training and development process includes

• Increasing the job satisfaction among the motivated employees which in turn helps in reducing the labour turnover and absenteeism.
• Decreasing job dissatisfaction through maintaining the excellent performance of the employees within the workforce.
• In order to cope with labour shortages, McDonalds HR managers focus on development of the skills of existing employees
• Establishing the most effective and efficient working methods in order to maximize the productivity among the staff and increasing the competitive edge
• McDonalds focus on application of new technology and use of new equipment

McDonalds Achievement in Training and Development of their employees

Once the candidate is selected, McDonalds beings training programs with the one hour of orientation. Each branch of McDonald has their own video set ups and technological resources which helps in the description of the operations and practices to the employees. So, it is everyone’s job to involve in the ongoing training process of MacDonald. Thus, all the employees receive induction training with the followed structured development program based on the employee position. After completing the initial training, all the employees have to pass Observation check list (OCL) to become successful in the particular area.

However, every employee of McDonalds in the start is stayed at the 21 days of probationary period which in evaluating the performance of the employees.

MacDonald’s Human Resource Planning

Human resource planning is an essential part of the management to hire the right people by using perfect training and development programs for them. Therefore, ultimately it helps in the achieving the MacDonald’s goals and vision. In order to meet the McDonalds aims and objectives successfully, it is the responsibility of the human resource management team to identify the effective way and problems that company while recruiting the best candidates and getting the proper solution.

Now, lets the objectives of Human resource planning in Mcdonalds in order to ensure that organization has right staffing method at the right time and for the right skills.

McDonalds Objectives of Human Resource Planning

• utilizing the best use of human resources
• aim to look forward for the problems with surplus staff
• building an efficiently flexible and well trained workers
• eliminating organisation’s dependency on the outside recruitment agencies

MacDonald’s Achievement in the Human Resource Planning

Just like other business organizations, McDonalds want the assistance of the staff for their daily activities. McDonalds ensures their key role in the operations must be fulfilled by the staff.

Thus, HRM strategy planning of mcdonalds also ensure that their planning must match the need of selecting potential employees not the ones that goes the against the roles and posts. This builds the suitability of the employees and prevents the company from number of problems such as

• High levels of poor productivity
• Employee job dissatisfaction
• high levels of absenteeism
• complains of the customer
• employee replacement
• Unpleasant feeling among the staff member

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