Wayne Cunningham

Business Management Assignment 2 Title: To Investigate and evaluate a topic appropriate to human resources within an organisation. Wayne Cunningham Tutor: Emer Carolan Due Date: 6-03-2013

Wayne Cunningham

Table of contents

Wayne Cunningham

AIM: My aim in this project is to investigate and evaluate how McDonalds recruit and select their staff and how they continually train and evaluate their staff and research their appraisal performance methods. This will be achieved through contact within the McDonald Group HR department and
3

Wayne Cunningham

through their on line company information and by calling into their local restaurants. Methodology: The data was mostly collected from Internet sites such as www.mcdonalds.com, search sites such as Google, Bing, and Yahoo and also calling into some actual restaurants and speaking with some employees and getting some literature off some of the managers in
4

Wayne Cunningham

these sites. I also tried to get some info from the HR department and received a small amount of feedback from here. Introduction:
I have chosen McDonalds as it is an international organisation and globally massive in over 130 countries worldwide and employs over 800,000 in 34,000 locations throughout the world. It had a total worldwide revenue of gross $27.6 billion dollars last year, quite a feat when you consider its humbling beginnings in 1940 in San Bernadino California USA founded by the McDonald brothers Richard and
5

Wayne Cunningham

Maurice. McDonalds Corporation was founded in 1955 by Ray Kroc in Des Plaines Illinois and was the 9th restaurant and this ultimately led to him buying out the original McDonalds brothers stake in the business and their demise from the fast food industry completely.

A definition of Human Resource Management:

Is the process involved in the hiring and training of employees so that they become more valuable to the organisation. Human Resource Management will include job analysis, the selection process employing the right person for the job, planning personal needs, job orienteering and staff training. They may also be involved in managing wages further training resolving
6

Wayne Cunningham

disputes and communicating with staff at all levels. Examples of these core qualities would be an extensive knowledge of the industry and have effective leadership and negotiation skills. (www.businessdirectory.com)

Introduction to the Human Resources Department: Organisational Chart for a McDonalds Restaurant

Wayne Cunningham

In any McDonalds restaurant there can be up to 30 full time staff and another 30 part time in each location depending on size. The Human Resources department is mostly done in house and any recruitment selection is done at a local restaurant level. The positions can be advertised on line or in local newspapers or directly in
8

Wayne Cunningham

the restaurants. The restaurant manager is the person directly involved in the hiring of the individual and then the training of the lucky candidate is done by various people depending on the role they achieve. The aim of Human Resources Department is to help the organisation to achieve success with the help of people. Human Resources Department strategy is an approach for making decisions on the plans of the organisation. These plans are concerned with the employee relationship and its recruitment, training development, performance management, rewards and employee strategies. The basic activities followed by Human Resources Department are that of providing
9

Wayne Cunningham

services to internal customers. These include central management team leader, line managers and employees. The main functions are covering all the aspects of Human Resources Department like human resource planning, recruitment and selection, employee development, performance appraisal, employee rewards, health and safety management, employee relations and welfare. Functions of Mc Donalds HR department Human Resource Planning Evaluate future recruitments needed as McDonalds is increasingly expanding (franchise) and actually have more

10

Wayne Cunningham

than 38,000 restaurants in more than 130 countries around the world.

To create training programs for the staff, as the staff for example on the till need to serve customer fast, approximately two to three customers a minute also they need to have a good customer service level.

It is important to build up promotion and career development strategies which will benefit both the staff and the organisation.

11

Wayne Cunningham

Avoid redundancy as this can affect the other workers they will be de-motivated and it will give a bad image to the organisation.

To be able to build a flexible workforce to meet the changing requirement and environmental issues that are forever changing.

Controlling the staff wages and salaries, while in the mean time, guaranteeing the competitiveness of employees salaries. Recruitment and Selection: This is mostly done on line and consists of various questions and has two stages, if the candidate is
12

Wayne Cunningham

successful he/she will be called to the local restaurant for an OJE( ON THE JOB EVALUATION) they will meet with the manager and asked to perform certain tasks to see if they are suitable for the role. If successful they will then meet with the training manager and discuss the terms on offer and the training and promotion incentives McDonalds can offer candidates. Employee Development: Each member of the staff is constantly evaluated for development within the organisation this is done by the HR manager in each restaurant and can be achieved through crew member of the month awards and crew member of the year. McDonalds also offers scholarships to certain staff members in Business
13

Wayne Cunningham

Management courses in order for certain individuals to enhance their skills and become managers of their own restaurants.

Employee Rewards: McDonald's benefits and compensation program is designed to attract, retain and engage talented people who will deliver strong performance and help McDonald's achieve their business goals and objectives.

Benefits and Compensation: Medical Dental Profit Sharing Vacation Sabbatical Program Employee and dependent life insurance Incentive Pay
14

Wayne Cunningham

Recognition Programs

Health & Safety Management: Well, for the successful running of a McDonalds restaurant there are many health and safety procedures that have to be adhered to, with the emphasis on providing hot, quality food products that are free from chemical, physical or bacterial contamination. Things like: washing hands regularly; using the appropriate tongs for the food product; Having separate vats for vegetables, meat and fish; keeping the food warm at temperatures that reduce bacterial growth, then throwing them in the waste bin when they're out of time; using cones and dry mops when mopping the floors, and hundreds more. There are procedures for everything, but it's mostly common sense.

The HR function I have chosen to explain is the recruitment & selection process of McDonalds:

15

Wayne Cunningham

The recruitment & selection process in McDonalds starts at the manpower planning stage. This is where each restaurant plans how many staff are required and the skills necessary when there is a need to recruit and select staff. McDonalds carry out the following process, in McDonalds they see their staff as their most important asset. They know that effective workers are the key to success and that customers want to see polite friendly staff who carry out their duties in an orderly efficient way. As recruitment & selection is very expensive they know how important it is to choose wisely and treat their staff well. To ensure the company employs the right calibre of staff they identify the skills and the behaviours of each successful candidate should have through the initial contact to the psychometric tests and in house training which is ongoing and the evaluation is constant in order to reap the rewards for both staff member and McDonalds. After an initial 3 week probationary period the candidate is assessed on his role and then either offered the role or the recruitment process is stopped here.
16

Wayne Cunningham

McDonalds believes that this recruitment selection is effective as it constantly employing people and its rewards are great to people who want to advance their careers within the company through promotions and scholarships and they believe that the customer wants to see a happy face. This is achieved through having happy staff members that enjoy their work and its surroundings... Two Theories applied to the HR department of McDonalds are: McDonalds use Maslows Hierarchy of needs in that it offers staff its physical needs through competitive salaries with annual reviews, management opportunities and good holiday entitlements, health care and scholarships and monthly awards. The safety side of McDonalds is that it is a global company with great career prospects and enhancements through the ranks. In McDonalds all staff seem to have a social element in the fact they are part of a crew that gets rewards for its efforts so they have a feeling of love and belonging as McDonalds realise its staff morale is key to its success.
17

Wayne Cunningham

All staff members can climb the promotional ladder and get acknowledged for good work from staff member of the month to scholarships bonuses and they earn the respect for their self esteem. This is all about the staff member realising his or her full potential in a challenging rewarding environment, with good structured career paths in the quest for self actualisation.

Fonbrun, Tchy and Devanna model of HRM : This model emphasises the interrelatedness and the coherence of human resource management activities. In this model there are four key components: selection, appraisal, development and reward these four human resource management activities aims to increase the organisational performance. This model has been criticised as being too simplistic because it only focuses on four components. It also ignores stake holder interest, situational factors and the notion of management's strategic choice. McDonald's follows all activities of this model to get best performance from employees. But McDonald's
18

Wayne Cunningham

considers other factors, such as situational factor, stake holder interest and so on, to keep their position at the top of its industry.

Conclusion: In my studies of McDonalds HR I have found it to be both interesting and informative and I think it has a very good working environment for its employees. It seems to follow a strict sense of guidelines and this has helped it remain number one in its chosen field whilst having good staff morale and working conditions it still is a very profitable organisation. It has strong beliefs in cultural diversities and is an equal opportunity employer so whatever background you come from there is a role for everybody and great promotional and career advancement opportunities. Recommendations: I did find it difficult to get in touch with McDonalds HR in their head office but the local restaurants were very obliging in giving information. In the course of this project I found the company to be very informative with their on line information and
19

Wayne Cunningham

have formed the opinion that it would be a good company to work for given the promotional prospects and rewards options available. I think they should recruit more on line as this is by far the quickest way but I understand their methods in the recruitment and selection process and as the old saying goes if its not broken why fix it... They will go from strength to strength providing they stick to their business model and the belief in their employees, are what keeps them at the top of their industry...... Bibliography: www.mcdonalds.ie www.mcdonalds.com www.wikipedia.com www.google.com www.schoolportal.co.uk

20

Wayne Cunningham

21