| with branches in over 100 countries
| Organizational Analysis| McDonalds Corporation| McDonald’s is the biggest restaurant corporation in the world and second largest employer in the United States, after Walmart. With 500,000 employees serving at over 90,000 branches around the world, McDonald’s requires great leaders with more knowledge and skills in Human Resources Management than any other corporation. The following paragraphs pinpoint the external environments affecting the Human Resources decision, exam the strategy for recruitment and retention and, last, discuss the McDonald’s approaches to employee performance management, development and reward.I would at the end provide suggestions of improvement for the strategies.
For any corporation to succeed, three core elements are essential: mission vision, and value. They are the pillars of a stable and goal oriented organization. For a global corporations like McDonald’s, establishing the three pillars takes more effort as diversity and culture be taken into consideration and respect.
McDonald’s is the most successful restaurant corporation in the world, with branches in over 100 countries and 500,000 employees serving millions of the people around the clock.However, its success story does attract some attacks and criticism, from Hollywood reflecting the consequences of eating fast food they serve to the entitlement of ‘McJobs’ in dictionary. The entitlement of jobs in McDonald’s as ‘McJobs’ with attachment of low-paying and labour-intensive has been common in the American society.
People working in McDonald’s are also identified as the lowest class of the society. Criticism comes not only from the general public, but also from professionals.According to Merriam-Webster dictionary, McJobs is define as “low-paying and dead-end work”. For McDonald’s, criticism is unacceptable and would have serious impacts on the system, increasing employee turnover rate and lowering overall morale.
In terms of recruitment, giving the shift of employee’s demand for better compensation and benefits, particularly at health care, the first action enforced is to upgrade the health care system for the employees worldwide.Beyond the plans aimed at existing employees, McDonald’s refined its recruitment process to build a better hiring pool of candidates. McDonald’s also created a manager and crew questionnaire to determine if potential job candidates are interested in working on team and are comfortable interacting with customers. McJobs employment program also helps assist mentally and physically challenged individuals; the McMaster program recruits, trains, and retain people aged fifty-five and over.
According to the information provided by McDonald’s, the 90-day employee turnover rate was 40 to 45 percent in 2004, down from 50 percent in 2001. The overall employee turnover rate also dropped from 150 percent a years ago to 90 percent in 2004. 9 McDonald’s has one of the most extensive training and reward programs in the world.
The training covers from basic operational techniques to management skills. Fully 12. 5 percent of the American workers got his or her first job from McDonald’s. Regarding to performance rating system, McDonald’s introduced a global guidelines.
The management team believes that guidelines, rather than forced rankings, encourage differentiation of performance while allowing for some flexibility for local nuance. The team also allows local managers to customize their compensation programs to meet their markets’ demand. In addition, in order to increase staff satisfaction and performance in the early stage of recruitment, staff will have two performance reviews in the first year, designed to move people up quickly, provided they can convince restaurant managers of their abilities.We could easily see McDonald’s commitment and dedication to enhance the corporate structure, upgrading employee abilities and performance and reimaging herself trying to change customer perspectives on the notion of “McJobs”.
However, there are one essential parts, the corporation has not realized-relationship between staff and management. The core of the problem is the lack of third-party mediator. The management’s resistance to forming or introducing union would enlarge the communication gap between the corporation and the employees.No matter how good the new programs and trainings are, there are some defects and error. Yet, the employees are reluctant to talk to the management and reflect their considerations, concerns, and problems they aware. It is a one-way communication without objection or differentiation in voice. Sooner to later, McDonald’s should allow union to be formed and be the middle-person helping both parties to bargain for their best interests.
Another area of improvement is public relations.Although McDonald’s has put much effort in reimaging herself, by forming McDonald’s Charity and joining other fund-raising events, such as Terry Fox Program, renovating restaurants to provide a better eating environment for customers (the addition of specialized McCafe and McDessert companions, replacing fixed chairs and tables to mobile stools and circular tables), and changing of employee costumes to more friendly T-Shirts, the corporation’s evidence-based reputation work has not shaken up the negative perception because customers see those improvement as cover-up for the corporation’s bad deeds, like cosmetics.McDonald’s must let customers and the general public understand more about their corporation, the background, and most importantly the food they serve. Increasing transparency can help clarify rumors and allow people to understand the McDonald’s way. Given above information and analysis, we realize McDonald’s, as the biggest restaurant chain in the world, is shifting its course, putting more emphasis on employees.
The upgrade in various programs would increase the motivation and overall morale in the workplace, Yet, the system cannot be perfect without constant improvement. There are still areas the corporation must reform, such as the communication between employees and local managers, position on forming unions, and public relations. Works Cited About McDonalds. (n. d. ).
Retrieved October 25, 2011, from About McDonalds: http://www. aboutmcdonalds. com/mcd McDonalds Corporation www.
mcdonalds. com/corp/new/corppr/2005/CP R_09212005. html