Docstoc

CASE STUDY ON MC'DONALDS

Document Sample
CASE STUDY ON MC'DONALDS Powered By Docstoc
					                                                                                               MacDonald’s




KFC Kentucky fried chicken is one of the most known fast food chain in the world started in
early 1930’s by kernel senders in southern USA as a small franchise operation. It is the project of
Mackenzie Restaurants International limited.


Food, fun & Festivity, this is what KFC is all leading the market since its inception; KFC
provides the ultimate chicken meals for a chicken loving nation. Perfecting its secret
recipe of 11 herbs and spices in 1939, KFC has come a long way. KFC was acquired by
Pepsi co in 1986. With over 11,000 outlets in 80 countries and territories around the
world, KFC has maintained its title, for being the “chicken Experts”.




First KFC outlet was opened in Gulshan-e- Iqbal in 1997. KFC wore the title of being the
market leader in its industry. Serving delicious and hygienic food in a relaxing
environment made KFC everyone’s favorite. Since then, KFC has been constantly
introducing     new     products      and    opening      new     restaurants     for    its    customers.
Presently KFC is branched out in eighteen major cities of Pakistan (Karachi, Lahore,
Gujranwala, and Sukkur & Muree) with more than 60 outlets nation-wide. In Pakistan all
chicken provided is 100 % Halal.


KFC also plays in the economics development of our country.



-------------------------------------------------------------------------------------------------------   1
                                                                                             MacDonald’s



    •    Presently KFC has provided to over 1200 Pakistanis, which adds up to 6000
         individuals directly dependent in KFC Pakistan.
    •    The Government of Pakistan receives over Rs.10 million per month from KFC
         Pakistan as direct taxes.
    •    95% of all food and packing material used in KFC Pakistan is procured locally,
         which sums up to a purchase of over Rs.35 million per month.
    •    Each new outlet developed by KFC Pakistan costs approximately Rs.40 million,
         which is a huge amount for our construction industry.
         KFC and Pakistan are Growing Together.




It’s rich history began with its founder’s vision and their commitment to be peoples'
favorite place and way to eat with inspired employees who delight each customer with
unmatched quality, service, cleanliness and value every time. The business was started in
1940 by two brothers DICK and MAC MCDONALD in San Bernardino. Formed in
1954, McDonald's brand is the leading global foodservice retailer with more than 30,000
local restaurants serving nearly 50 million people in more than 120 countries each day.




-------------------------------------------------------------------------------------------------------   2
                                                                                             MacDonald’s




Aiming to be the world's best quick service restaurant experience, McDonald's started its
operations in Pakistan in 1998 and is a leading fast food service retailer for its valued
customers. With a strong belief in the phrase when it's green it's growing, McDonald's
Pakistan is growing with the focus to provide friendly and quick service restaurant
experience to their customers. Currently McDonald's Pakistan is operating in various
cities of Pakistan I-e Lahore, Faisalabad, Karachi, Hyderabad, and Islamabad &
Rawalpindi with the plans to cover the customer base in various other cities of the
country.


McDonald's Pakistan is a part of the Lakson Group of Companies, with a regional office
in Lahore and the main Head Office in Karachi. They are operating with a network of
restaurants to reach our customers for providing friendly services in all different regions
of the country.




-------------------------------------------------------------------------------------------------------   3
                                                                                             MacDonald’s




Food, Fun & Festival, this is what KFC is all about .KFC provides the ultimate chicken
meals for a Chicken Loving Nation. Be it Colonel Sanders secret original Recipe Chicken
or the Hot & Spicy Version, every bite brings a YUM on our face. At KFC we can
proudly say, “We Do Chicken right”.




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 ’’.




KFC mission is to establish its position as the leading WQSR (Western Quick
Service Restaurant) chain, serving good value, and innovative chicken based
products. KFC is consistently providing a pleasant dining experience with fast
friendly service in a clean and convenient location. At all times it must be dedicated
to providing excellent service and delighting customers.




McDonald's mission is to be their customers' favorite place and way to eat with inspired
people who delight each customer with unmatched quality, service, cleanliness and value
every time.




-------------------------------------------------------------------------------------------------------   4
                                                                                             MacDonald’s




    •    Highest standards of personal and professional integrity at all times.
    •    Encouragement to new and innovative ideas.
    •    Reward results and not simple efforts.
    •    Reward and respect to all contributors of KFC.
    •    Dedicate our organization and our selves to excellent service and delighting
         customer.
    •    Focus resources to support restaurant operations because that is where we service
         are customers.
    •    Expect each individual to achieve his or her fullest potential and provide support
         to enable each person to meet the highest expectations of performance.
    •    Pledge to be open, honest and direct in our dealings with one another.
    •    Confront issues willingly but never attack personality.
    •    Encourage new and innovate ideas because these gave keys to our competitive
         growth.
    •    View failed attempts as learning opportunity.
    •    Reward result, not simple efforts.
    •    Commit to deliver consistent growth and sales, profit and size of organization.
    •    Commit to teamwork as this surpasses individual effort.
    •    Share information, ideas and credit broadly within the organization.




    •    Integrity and Honesty in their work.
    •    Open, Respectful and Supportive to employees and customer.
    •    Prepared to take challenges and see them through.


-------------------------------------------------------------------------------------------------------   5
                                                                                             MacDonald’s
        •    Deep regards for Customers, Business partners and employees
        •    Providing customer’s unparalleled levels of Quality, Service, Cleanliness and
             Value.

        •    Committed to people because knowing that diverse team of well-trained
             individuals, working together, is the key to our continued success.

        •    Give back to the communities in which we do business.

        •    Celebration of achievements, yet always strive to achieve new heights.

        •    Believe in the McDonald’s System.
        •    Growth of the business profitably.
        •    Strive continually to improve.




•            Build an organization dedicated to excellence.
•            Consistently deliver superior quality and value in our products and services.
•            Maintain a commitment to innovation for continuous improvement and
             growth, striving always to be the leader in the market place changes.
•            Generate consistently superior financial returns and benefit our owners and
             employees.




    •       To serve good food in a friendly and fun environment.

    •       To be a socially responsible company.

    •       To provide good returns to its shareholders.



-------------------------------------------------------------------------------------------------------   6
                                                                                             MacDonald’s
  •    To provide its customers with food of a high standard, quick service and value for
       money.




Products:
      1. Burgers
      2. Arabic Rice
      3. Fruit Salad
      4. Corn on the cob
      5. Scoop of Walls
      6. Fries
      7. Hotshots
      8. Rice Spice
      9. Chicken Meals
      10. Soft drinks


Services:
      1. Self-Service System

      2. Home delivery

      3. Mobile van




Products:
      1. Burgers




-------------------------------------------------------------------------------------------------------   7
                                                                                             MacDonald’s
    2. Chicken sandwiches

    3. French fries

    4. Soft drinks

    5. Desserts

    6. Salads

    7. Breakfast items

    8. Milkshakes

    9. Coffee




Services:

    1. Self-Service System

    2. Drive-In through Service




    •    McDonald’s
    •    Subway
    •    AFC
    •    Mr. Burger




    •    KFC


-------------------------------------------------------------------------------------------------------   8
                                                                                             MacDonald’s
    •    AFC
    •    Subway
    •    Mr. Burger




Support:

Provide coaching, leadership and operational support to employees.


Optimistic Working Environment:

Creating and running an energetic and valuable work environment, to commit employees
to serve the best to the customers.


Successful implementation of policies:

Successful implementation and maintenance of all Company policies and procedures in
relation to operations, customer service, cash handling, marketing, purchasing, human
resources, health & safety, administration, training and development


Opportunities for career development:

Provide outstanding opportunities for career development-not to mention a friendly and
supportive work environment, our unique culture of recognition and a frankly inspiring
leadership team




-------------------------------------------------------------------------------------------------------   9
                                                                                           MacDonald’s
Competitive compensation:
Get the competitive edge in providing compensation to employees.




Respect and Recognition:

Every employee is consistently treated with dignity and respect. All employees are
valued and recognized for their contribution to the organization.


Values and Leadership Behaviors:

Every employee is a leader who listens and communicates openly and honestly and every
employee acts in the interest of all other people who contribute to the success of the
business, including customers, owner, and suppliers.


Total Compensation:

To recognize people part in business success, Pay and Rewards program follows a Pay-
for-Performance philosophy, the better results produced by employees, the greater pay
opportunities.


Learning, Development and Personal Growth:

Employees has the opportunity to advance in skill, contribution and career level through
high-quality training, coaching and feedback.


Resources to Get the Job Done:



------------------------------------------------------------------------------------------------------- 10
                                                                                           MacDonald’s
It is ensured that a comfortable place to work with access to the materials, equipment and
information has been provided to do the job.




Since its inception, KFC has evolved through several different organizational changes.
These changes were brought about due to the changes of ownership that followed since
Colonel Sanders first sold KFC in 1964. In 1964, KFC was sold to a small group of
investors that eventually took it public. Heublein, Inc, purchased KFC in 1971 and was
highly involved in the day to day operations. R.J. Reynolds then acquired Heublein in
1982. R.J. took a more laid back approach and allowed business as usual at KFC. Finally,
in 1986, KFC was acquired by PepsiCo, which was trying to grow its quick serve
restaurant segment. PepsiCo presently runs Taco Bell, Pizza Hut, and KFC. The PepsiCo
management style and corporate culture was significantly different from that of KFC.

Another strategy of KFC is currently working with is to improve operating efficiencies.
This in turn can directly impact the operating profit of the firm. In 1989, KFC centered on
elimination of overhead costs and increased efficiency. This reorganization was in the
U.S. operations and included a revision of KFC’s crew training programs and operating
standards. They emphasized customer service, cleaner restaurants, faster and friendlier
service, and continued high-quality products.




------------------------------------------------------------------------------------------------------- 11
                                                                                           MacDonald’s




 Organizational structure:



                                                   M. D.

                                                    G. M.


          H. R.                           MARKETING                            FINANCE

          DEPARTMENT                      MANAGER                              MANAGER


                                               RESTAURANT
                                               MANAGER



                                                FIRST
                                                ASSISTANCE




                                                SECOND
                                                ASSISTANCE




                                                TRAINING
                                                MANAGER




                                                FLOOR MANAGER




                                                CREW
                                                LEADER




                                                CREW




------------------------------------------------------------------------------------------------------- 12
                                                  CUSTOMER CARE
                                                 OFFICER
                                                                                           MacDonald’s




Human resource Department:


HR Department of KFC is responsible for making all the plans regarding employees and
the basic organizational structure. Their basic plans involve:
    •   Inspiring Management
    •   Flat & Flexible Structures
    •   Long-Term Development
    •   Dynamic Compensation
    •   Life-long Learning




                                           KFC

                                                            Marketing


                                                             Project


                                                     Training & Research


                                                      Quality Assurance


                                                             Finance




------------------------------------------------------------------------------------------------------- 13
                                                            Operational
                                                                                           MacDonald’s




Human resource planning:
KFC being a human company strongly supports the idea of giving their employees a
comfortable working environment. Its HR department is made to deal with its employees,
who are considered the most important asset of this organization. KFC consider Human
Resources as a Partner & Change Agent to enable Company Transformation. It was this
department that was assigned the task of driving the Transformational Strategy:
This department keeps on updating their policies regarding the development of their
employees from time to time. They have translated their Business objectives to be
translated into Personal objectives .KFC considers their HR Department as the driving
force for bringing the evolutionary change within the organization. They are responsible
for the continuous checking and improvement of the Developmental Centers as well as
for the hiring , retaining and evaluation of the employees, for conducing graduate
programs, Developing Progress and Developmental Guides.
The fact that KFC is more people and product than systems oriented is reflected in the
way HR is functioning and is organized. Processes and systems as well as professional
HR tools are there to support HR management but never to the detriment of the human
dimension. The human perspective should be present at all times and under all
circumstances. At KFC the HR function should report to the manager responsible for a
defined operation (Region, Market, Country, and Factory) with a functional relation to
the market HR according to the size of that operation. The HR manager should not only
have the skills and competencies from a purely professional standpoint but also have the
charisma and the credibility to be a trustworthy partner to her/his colleagues.
HR has planned a new approach for employee development. This new approach includes,




------------------------------------------------------------------------------------------------------- 14
                                                                                                                                    MacDonald’s
translating the business objectives into Personal objectives. It rather than only focusing
on the WHAT but also on the HOW to deal with different situation that employee might
face and how to train them properly. It Focus on development and dialogue and it does
not rate the employees but evaluating the "Nature of the Contribution” Trails / Acquires /
Masters / Steers / Transforms. It does not involve any mechanic link with salary.


The basic functions of HR at KFC Pakistan are:

             Attra          ta       st le
                  cting & Re ining Be Ta nt

                                                                           Establish ing fair &
                                                     d
                                       Creating share vision                       t
                                                                        transparen HR po    licies
                                              of values
                                                                                                              g
                                                                                                     Completin roll out of
                                                                                                          Develop
                                                                                                            le itiative
                                                                                                       Peop In

               Restructuring to create
               business spe cialization


                                                                                                                   ce anag
                                                                                                          Performan M     ement
                                                               People
                                                                People


                          d
               Training an re   -training

                                                                                                        Employee commu  nication/
                                                                                                                Relations


                       Incorporating flatter
                            structures
                                                                                       Maintain Indu     l
                                                                                                    stria Peace
                                                               Reward




                                                                                                            Human Resources




    Functions of HR department:
        •    Training and retaining
        •    Reward for good performance
        •    Maintenance of industrial peace
        •    Employee communication system
        •    Performance management
        •    Restructuring to create business specialization
        •    Creation of shared vision and values
        •    Establishment of fair HR policies




------------------------------------------------------------------------------------------------------- 15
                                                                                           MacDonald’s




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. Employees
are the most important resources in McDonald's and all managers therefore take on
human resource responsibilities which are based on the human resource plan.
    •    Employee’s Motivation
    •    Development and evaluation               M. D.
    •    Share in the organization’s affairs
    •    Creation of competitive edge              G. M.

    •    Using workforce as major input to flourish business

        H. R. DEPARTMENT                MARKETING MANAGER                       FINANCE MANAGER
Organizational structure:

                                              RESTAURANT
                                              MANAGER




                                              FIRST ASSISTANCE




                                               SECOND
                                               ASSISTANCE




                                               TRAINING
                                               MANAGER




                                               FLOOR MANAGER




                                               CREW
                                               LEADER




                                               CREW


------------------------------------------------------------------------------------------------------- 16
                                               CUSTOMER CARE
                                               OFFICER
                                                                                           MacDonald’s




Departments of the Organization:

    •      Finance Department
    •      Human Resource Management
    •      Marketing Department
    •      Operation Department
    •      IT Department


Human resource department:
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 across McDonald's are given responsibilities for selecting, motivating,
developing and evaluating employees so that they can have a share in the organization’s
affairs.
All managers therefore take on human resource responsibilities. Employees are the most
important resources in McDonald's, particularly in creating a competitive edge.


Functions of HRM:
The functions of HRM in McDonald’s are:




------------------------------------------------------------------------------------------------------- 17
                                                                                           MacDonald’s
    •   Establishing major policies that cover the place and importance of people in
        McDonald's.




    •   Concerned with looking after people at McDonald's and their needs.




    •   Co-operative and helping other managers in their work.




    •   Acting as an intermediary between different groups and interests.




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




The person in charge of the Department usually the manager decides what qualification.
Skills and abilities are required to perform that particular job successfully. This is done
by the line manager of the vacant position. They tell their requirement to the Hr
Department and based on those requirements ads are published in the newspaper. Job
specification and job description is given by the line managers to the HR Managers.




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


------------------------------------------------------------------------------------------------------- 18
                                                                                           MacDonald’s
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.
McDonalds applies the basic methods of Job analysis by which HRM can determine job
elements and the essential knowledge, skills and abilities for successful performance
methods.
McDonalds uses the following job analysis methods according to their jobs:
    •   Observation Method
    •   Interview Method.
    •   Questionnaire Method.




The job analysis is used to generate a job description, which defines the duties of each task,
and other responsibilities of the position. The description covers the various task
requirements, such as mental or physical activities; working conditions and job hazards.


Job description as per job:
McDonalds represent its Job Description as
“Category Profile” and “Individual Competencies”


Office jobs:
For office jobs Job Description is named as “Category Profile”


Initial 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


------------------------------------------------------------------------------------------------------- 19
                                                                                           MacDonald’s
       Strong communication skills to act as a liaison between stakeholders and team
        leaders


Middle entry level:

       Strong interpersonal and leadership skills.
       Effective negotiation & problem solving skills
       The ability to see the big picture while delivering organizational goals


Restaurants jobs:

For restaurant jobs the Job description is written as “Individual Competencies”


Trainee managers:

       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
       Customer orientation with a positive attitude towards provision of quality
        services.


Customer care representatives:




     To maintain work standards of Customer care, customer relationship
     To strengthen marketing at local store level.
     Perform with a strong focus toward customer orientation.
     To independently organize and execute various events at store level.
     To achieve agreed targets for enhancing Local Store Marketing.




------------------------------------------------------------------------------------------------------- 20
                                                                                           MacDonald’s
Crew members:




     Good communication skills.
     Have ability to work at all levels required for crew members
     Work efficiently and in organized way.




                                                                                            The       job
specification describes the person expected to fill a job. It details the knowledge (both
educational and experiential), qualities, skills and abilities needed to perform the job
satisfactorily. The job specification provides a standard against what to measure; how well
an applicant matches a job opening and it should be used as the basis for recruiting.
Job specification as per job:


In McDonalds the Job specification is written under heading known as “Profile” and
“Competency Level”


Office jobs:


In office jobs it is known as “COMPENTANCY LEVEL”


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


------------------------------------------------------------------------------------------------------- 21
                                                                                           MacDonald’s


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


Restaurants jobs:


Job Specification is represented by “Profile” in McDonalds.


Trainee manager:


Qualification: Post Graduate Degree in any discipline
Experience: Fresh candidates with no prior experience
Age: 28 years maximum
Gender: Male or Female


Customer care representative:


Qualification: Graduate Degree in any discipline
Experience: Fresh candidates with no prior experience


------------------------------------------------------------------------------------------------------- 22
                                                                                           MacDonald’s
Age: 24 years maximum
Gender: Females only


Crew members:


Qualification: Intermediate
Experience: Fresh candidates
Age: 18-25 years
Gender: Male or Female




Recruitment refers to the process of attracting, screening, and selecting qualified people
for a job at an organization or firm. Recruitment is the first part of the process of filling a
vacancy. The long-term success of the Company depends on its capacity to attract, retain
and develop employees able to ensure its growth on a continuing basis.


The KFC policy is to hire staff with personal attitudes and professional skills enabling
them to develop a long-term relationship with the Company. Therefore the potential for
professional development is an essential standard for recruitment. Each new member
joining KFC becomes a participant in developing a sustainable quality culture which


------------------------------------------------------------------------------------------------------- 23
                                                                                           MacDonald’s
implies a commitment to the organization, a sense for continuous improvement and
leaves no place for complacency. Therefore, and in view of the importance of these KFC
values, special attention is paid to the matching between a candidate’s values and the
Company culture .KFC recruitment process is decentralized. Adequate recruitment tools
may improve the hiring process, it is understood that the decision to hire a candidate
remains in the hands of the responsible manager supported by the HR staff. Under no
circumstances the decision to hire or not to hire is left in the hands of an outside
consultant or expert.


Internal recruitment:


KFC also believes in promoting from within, as it encourages employees to perform well
on their jobs. They publicize their jobs on site www.jobswithkfc.com


External recruitment:


Even when promoting employees intensively from within the organization, it is the role
of management and HR to keep an eye on valuable candidates from outside and to
benchmark internal skills with external offers. Their external recruitment includes


    •   Contacts with universities
    •   Attendance at recruitment events and other contacts are to be undertaken so as to
        ensure good visibility of the Company
    •   News paper is used for whole country
    •   Local media is used for specific city
         Cable network
        Banners
    •   Recruitment is also done through internet




------------------------------------------------------------------------------------------------------- 24
                                                                                           MacDonald’s
When KFC was looking for senior executives who could run a business, for two years it
scoured the management teams across various industries and offered senior executives of
companies like Coca Cola attractive benefits and a better salary scale to get them on the
team. These executives were promised quick advancement on their jobs, and apparently
given such incentives to join that most of the people offered jobs joined KFC even
though they were told before hand that at immediate present, no senior position was
vacant.




In McDonalds recruitment process is decentralized. Every branch of McDonalds is
independent to hire the employees. Usually at McDonalds employees are hired in a form
of badge. Also the transformations of employees within the franchises of McDonalds
took place for recruiting the employees. A typical McDonald’s restaurant can employ
about 60 people who include the both managerial and floor- based staff.


Internal Recruitment:


McDonalds select candidates from inside by considering their past performance.
MacDonald publicize their open jobs on their site www.mcdonalds2.rozee.pk where their
employees could apply for the job they also publicize it in their restaurants on Notice
Boards. So that the working employees could be informed from the vacant position.
For the executive posts McDonalds follow a succession planning technique where they
recruit their managers or senior employees to executive level on the basis of their
performance.


External recruitment:


External recruitment of McDonalds involves:


------------------------------------------------------------------------------------------------------- 25
                                                                                           MacDonald’s


    •   Recruiting via internet .McDonalds has its own site where they publicize for the
        jobs and offer people to send their CV’s through online process and often recruit
        employees from their.


    •   McDonalds approaches the Newspaper or a magazine adds mostly to invite
        employees for jobs.


    •   College Recruiting McDonalds follow the most common method of college
        recruiting known as Internships because many floor base employees usually join
        McDonalds for internship.




Selection is a process of picking individuals (out of the pool of job applicants) with
requisite qualifications & competence to fill jobs in Organization.
There are 3 shifts operated in KFC
    •   Morning Shift
    •   Evening Shift
    •   Night Shift
According to KFC Management and Leadership Principles, only relevant skills and
experience and the adherence to the principles will be considered in employing a person.
No consideration is given to a candidate’s origin, nationality, religion, race, gender or


------------------------------------------------------------------------------------------------------- 26
                                                                                           MacDonald’s
age. It is as important to hire the right person as it is to integrate newcomers in the
organization so that their skills and behavior can merge smoothly with the company
culture. Whereas from new employees it is expected to respect the company’s culture, it
is accordingly required from all employees to show an open mind towards new ideas and
proposals coming from outside. The selection process involves the following:


    •   Initial screening
    •   Test
    •   Interview


Initial screening:
The application received through various sources are screened according to job
requirement


KFC test:
By using pre-employment tests KFC has not only saved valuable time, but also made sure
they hire the best candidates for their organization. Three major tests are included
    •   Skills test
    •   Behavioral test
    •   Physical test


Skills test:
This test includes the tests that measure reading and writing skills. These skills most
utilized by employees. The writing test evaluates the candidate for a number of structural
and logical skills based on an essay composed by the candidate. This results in further
insight, beyond the writing skills score, as to how the candidate feels about the topic and
how it pertains to the job. The reading test requires the candidate/employee to read a
number of passages and answer questions based on these passages to determine their
level of comprehension




------------------------------------------------------------------------------------------------------- 27
                                                                                           MacDonald’s
Behavioral test:
They are also used to evaluate employees and teams of employees. The behavioral
assessments can build benchmarks to compare potential employees.


Physical test:
Physical test will be designed to measure your ability to perform typical tasks. Potential
candidates before employment take a medical or physical examination. They might reject
the potential employee if the exam shows that he or she cannot perform the essential job
functions with or without a reasonable accommodation


KFC Interview:

Both structured and unstructured interviews can be conducted and final decision about
the candidate selection is made.




There are 3 shifts operated in McDonald’s
    •   Morning Shift
    •   Evening Shift
    •   Night Shift


The selection process of McDonalds involves the following factors:
             •   Initial screening

             •   Testing

             •   Interviewing

             •   Background investigation



------------------------------------------------------------------------------------------------------- 28
                                                                                           MacDonald’s



Initial screening:

In initial screening McDonalds collects the application forms of candidates from their
Website online and also by Mail or Fax and than they choose those applications which
are according to their job requirements and call those candidates for further process.


McDonalds Test:


McDonalds testing factors:
McDonalds conduct tests to know the following factors:


             •   Motor& physical skills (motion and movement skills)

             •   Personality ( attitude test)

             •   Cognitive abilities (Aptitude and Intelligence test)

McDonalds test methods:
McDonalds took following tests of employees:


Test of Cognitive Abilities:
These kind of tests include IQ tests, general and intellectual abilities, verbal fluency,
vocabulary etc. These tests are generally conducted while recruiting executives and
supervisors.
Motor and Physical Ability Tests:
These tests include checking the performance of the employee usually working on the
machines in operation department to check their reflexes and while working at their work
place.


Measuring Personality Interests:

------------------------------------------------------------------------------------------------------- 29
                                                                                           MacDonald’s
Involves taking into consideration the personal interests and motivations of the person in
his field.


Interview:
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.
All candidates after formal testing are called for the final interview. This is where the
final and overall assessment of the candidate takes place and selection decisions are
made. McDonalds employ Structured or Directive Interview content; the managers first
make a set of proper Questionnaires related to job and also predetermine their answers
and ask those questions from applicants in a structured order. Here questionnaires are
prepared according to the job requirements. McDonalds has a set interview content
known as Situational Interview, they ask situational questions from their employees like
give them a situation and ask their opinion that what would they do in that situation but
the situations are job-related. The interview is taken from the employees in two ways i.e.
     •       Top level interviews
     •       Low-level interviews.

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 Heads of the
departments takes the interviews of candidates for the Associate heads, officers,
managers, and assistant manager’s posts. After the selection is made the General
Manager approves the candidates


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



------------------------------------------------------------------------------------------------------- 30
                                                                                           MacDonald’s


    •   Job applied for i.e. the experience of the employee for the job.
    •   Relevant qualifications.
    •   Salary




Orientation is a function that allows a new employee to learn about the organization,
what the expectations are in the position, which is responsible and accountable, and in
general what they need to know to become an integral part of the company
Orientation takes place at KFC at two levels. One is for management staff hired to work
at the Head Office and the other is for the non management staff.
At the head office all the newly hired employees are given full orientation Arranged by
the HR department. Managers from different departments brief the employees about their



------------------------------------------------------------------------------------------------------- 31
                                                                                           MacDonald’s
departments. Orientation can be for as long as 1 to 6 months. Employees are also sent at
the factories for a month or so. This helps them in understand the function in a far better
way.




In McDonald’s employee orientation program range from 5 to 6 months and it includes a
Welcome Orientation Day arranged for the new employees where they got familiar with
the history or background of the company, cultural values, present conditions, future
goals and objectives or plans of the company. They also watch videos related to
company’s information and handouts are also given to them.
Employees are formally told about what to wear their dress code or uniform .Then
employees have to spend 15 to 25 days in different sub departments under one
department. The head of the department decides that what objectives a new incoming
employee should carry out. In McDonald each employee works with or under a “Training
Buddy” (supervisor).Employees get at least 6 months of time to show their skills and
knowledge. After these 5 to 6 months orientation employees get their appointment letters
as a permanent employee of McDonalds.




These are the planed or unplanned activities /opportunities provided or given to enhance
employee knowledge and skills for current and future job.


Training:
Learning is part of the Company culture. Each employee, at all levels, need to upgrade
continuously her/his knowledge and skills. The willingness to learn is therefore a non-
negotiable condition to be employed by KFC.



------------------------------------------------------------------------------------------------------- 32
                                                                                           MacDonald’s


The training methods in KFC are:
    •   Lectures
    •   On job training
    •   Job rotation
    •   Language programs


Lectures:
The employees are given lectures to inform them what KFC is expecting from them .A
complete guide line is given about the work.


On job training:
 First and foremost, training is done on-the-job. Guiding and coaching is part of the
responsibility of each manager and it is crucial to make each one progress in her/his
position. At KFC our "Customer Service Workers" and "Food Service Workers" have
extensive training in Customer Service, Health and Safety, Cleaning procedures and Food
preparation.

All training is completed within specific time requirements using a module based training
program with a strong emphasis on practical hands on learning


Job rotation:

Employees are rotated to different job with in there work area to enhance their skills


Programs to enhance language skills:
HR staff is responsible to assist the management in the elaboration of language skills
training programs too. Great importance is attached to programs enhancing the language
skills of the employees


Development:


------------------------------------------------------------------------------------------------------- 33
                                                                                           MacDonald’s
Regular counseling and guiding:
Regular counseling and guidance are the best tools for improving performance and for
helping people develop their skills. It also allows to correct errors swiftly and to
transform them into a positive learning experience. In KFC each mentor have the duty to
act as a mentor for employees


Organizing development programs:
Formal development programs are organized the purpose is oriented and designed to
improve relevant skills and competencies. Therefore they are proposed in the framework
of individual development programs. Training programs organized at the Training Centre
aim at developing and sharing best practices of the various management disciplines
practiced in the Group.




Training:
McDonalds follow a highly structured training process. Employees in McDonalds are
trained at all levels. They are trained to work on floor base area to back area.
McDonald's employee training programs are based on the company's core principles such
as:
      •   Quality

      •   Service

      •   Cleanliness

      •   Value

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




------------------------------------------------------------------------------------------------------- 34
                                                                                           MacDonald’s
        •     Lectures

        •     On-The-Job Training

        •     Job Rotation

        •     courses

These training methods are often practiced by entry-level workers or crew members
basically for the new employees.


Lectures:

The first stage of training is at the Welcome Meetings. These are usually arranged in a
Training Centre or Room.             These lectures set out the company's standards and
expectations for the new employees. Where, employees are introduced with a complete
description about the job, and a guideline that 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 learn
more and are more likely 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 and
allowed to develop their skills to a level where they are competent in each area within the
restaurant.


Job rotation:

McDonalds also uses the most known type of on the job training “Job Rotation”. It is
done within the specific department so that the employee becomes familiar with all level
of jobs.


Courses:

------------------------------------------------------------------------------------------------------- 35
                                                                                           MacDonald’s
McDonald’s arranges summer crash courses and wrap section for the employees


Development:

Crew leader development courses: McDonald’s is a large organization with
many employees working in different departments of the company. Every year the
company hires many people for it executive as well as managerial posts. In McDonald’s
there are different types of development plans for management for e-g MDP 1, MDP 2 ,
MDP 3 and CLDC (Crew Leader Development Course).There are also development
programs for the low level jobs for enhancing the skills of the employees


Summer crash courses: Different training courses are offered to their employees
such as summer crash courses arranged. Transfers of the employees are carried out with
the consent of the employees.


Two way communication: The communication of employees is directly with their
head of the department. There is a vital concept of two-way communication.


Employment at will: At McDonald's, employment is at will. This means that
employees are free to terminate their employment at any time, for any reason, with or
without cause, and McDonald's retains the same rights.




Parameters of performance appraisal:


Appraisal is exclusively based on:
    •   Competence
    •   Insight


------------------------------------------------------------------------------------------------------- 36
                                                                                           MacDonald’s
    •   Performance and potential
    •   Team work


There is exclusion of any consideration for origin, race, nationality, gender, religion or
age.


Method of performance appraisal:


KFC uses 360 appraisals. It is very thorough but time consuming. Upward feedback is
done by 360 degrees i.e. information is collected “all around” an employee from his or
her supervisors, subordinates, peers and customers. This term is also known as “multi
source assessment”. Subordinates can appraise their seniors. With the help of the
“Employee Satisfaction Survey” the heads get to know which employee is giving what
type of output.




Performance appraisal compares each employee’s actual performance with his or her
performance standard. Managers use job analysis to determine the job specific activities
and performance standards.




------------------------------------------------------------------------------------------------------- 37
                                                                                           MacDonald’s
“Performance appraisal helps in estimating employee’s current performance, setting work
        standards and then providing feedback to employees with the aim of eliminating
        performance deficiencies”.



Parameters of performance appraisal:


The performance appraisal is based on the following some of the parameters:
         Ethics
         General Knowledge/ IQ.
         Confidence
         Motivation
         Team Work
         Skill


At McDonalds every employee is on a race to give the best performance through their
knowledge, abilities and skills. An appraisal session is also arranged for the employees.
An appraisal interview in McDonalds is taken by Head of the Department only and the
progress report of the employee is also in the hands of the Head of the Department. In
McDonalds the yearly appraisals of employees are done in June to July.




Performance appraisal methods:
Employees in McDonald’s have a race to win based on their efforts. The employees do
their best to give the best performance through their skills and knowledge. A kind of
competition is among the employees to become the best employee. The appraisal
methods used are of two types, i.e.


    •    Graphical Rating Scale
    •    360 degree Feedback




------------------------------------------------------------------------------------------------------- 38
                                                                                           MacDonald’s
Graphical Rating scale:


McDonalds uses the Graphic Rating Scale Method for evaluating the performance
appraisal of employees. Through the Graphic Rating Scale the head of the department
rate the person according to the performance of its work, skill, knowledge, experience
and after the assessment according to the rating scale, rate the employee as appraised.
Through the graphical rating scale the head of the department rate the person according to
the performance of its work, skill, knowledge, experience and also on the performance in
the training programs and after the assessment according to the rating scale rate the
employee is appraised.

Graphic rating scale method involves the following traits:

             •   Communication
             •   Personal effectiveness/efficiency
             •   Productivity
             •   Quality of work
             •   Reliability




360 degrees feed back:


360 degree feed back is also used to evaluate the out put of employees through multiple
sources. Raise in salary is done by 10%and if performance is also counted then 20%
increment is given at any time of the year.


McDonalds uses the Graphic Rating Scale Method for evaluating the performance
appraisal of employees. Through the Graphic Rating Scale the head of the department




------------------------------------------------------------------------------------------------------- 39
                                                                                           MacDonald’s
rate the person according to the performance of its work, skill, knowledge, experience
and after the assessment according to the rating scale, rate the employee as appraised.

Graphic rating scale method involves the following traits:

        •        Communication
        •        Personal effectiveness/efficiency
        •        Productivity
        •        Quality of work
        •        Reliability

In McDonalds employees are rated according to these or more traits. Rated on his/her
performance that the employee is good in communication skills or not, the employee
could work independently on its own. The employee is cooperative with other his/her co-
workers. The productivity of work that weather he/she could work more and proper in
less time and finally is the employee is reliable means he/she will work on time
appropriately.




Compensation and Benefits:
KFC favors competitive, stimulating and fair remuneration structures offering an overall
competitive and attractive compensation package. Remuneration includes salary, any


------------------------------------------------------------------------------------------------------- 40
                                                                                           MacDonald’s
variable part of remuneration as well as social, pension and other benefits. Each operating
company will establish a compensation practice taking into account relevant external
compensation levels as well as the requirement of internal fairness. It is recommended to
undertake regular surveys so as to gather relevant information on the remuneration levels
practiced at a local or national level.


KFC’s policy is to strive to position it as an employer offering remuneration levels above
the average of the relevant benchmark. KFC reviews regularly its competitive position
with other companies so as to keep in line with the market trends. However, the evolution
of remuneration is in the first instance determined by the capacity of the Company to
improve its productivity. Wage and salary structures should be kept simple and avoid
unnecessary complexity so as to provide effective compensation and reward.


Remuneration structures should specifically facilitate the implementation of flat
organizational structures and be flexible so as to be able to adapt to the evolution of the
market conditions. This means broad spans allowing sufficient flexibility to effectively
reward high professional insight and performances as well as individual potential.


It is the responsibility of each manager to propose, within the framework of the company
policy, the remuneration of her/his employees, taking into account the local market,
individual performance, skills and potential for development. It is also the responsibility
of each manager, if needed with the support of HR management, to communicate
properly, clearly and with sufficient transparency, the individual remuneration
of each staff member taking into account her/his professional performance and her/his
specific responsibilities.


The quality of communication in these matters is an essential part of the dialogue that
each manager will have with her/his employees on remuneration matters. Specifically at
management level, the variable part of the remuneration may be substantial. This part is
linked to a combination of group, business and individual or team target achievements.
The higher the remuneration level, the more important will become the variable part. It is


------------------------------------------------------------------------------------------------------- 41
                                                                                           MacDonald’s
realized that, however important remuneration is for each employee, it is not
remuneration alone that will stimulate the motivation of the staff. The HR management
sees to it that the implementation of the remuneration policy is fair throughout the
organization and that its spirit is duly reflected.


Benefits:
Management Staff:

    •   Provident Fund
    •   Pension Fund on employee’s request
    •   Gratuity
    •   Leave Fair Assistance
    •   Marriage gift scheme once in a service
    •   Baby feeding scheme
    •   Annual leaves for 15 working days in a year
    •   Casual leave 10 working days in a year
    •   Casual leave encashment
    •   Medical leave 10 days in a year
    •   Medical allowance
    •   Hospitalization from panel hospitals
    •   Meal subsidy for field staff up to group 1
    •   Shift allowance
    •   Family day gift once in a year
    •   Eid gift on both Eids
    •   Company maintained car to group 3.3 managers and above
    •   Vehicle Maintenance allowance for Group 2 employees having non field car loan
        on production of receipts
    •   Relocation package: As per group entitlement
    •   Life Insurance: Under group life insurance policy as per group entitlement
    •   Hajj Balloting: After 5 years service through balloting


------------------------------------------------------------------------------------------------------- 42
                                                                                           MacDonald’s
    •   Pick and drop service: For factory staff where such facility is available
    •   Car loan facility
    •   Maternity leaves for female employees
    •   2 pair of shoes per year to only team leaders, engineers & quality assurance team
    •   2 uniforms per year to only team leaders, engineers & quality assurance team
    •   Bonus as per company policy
    •   Incentive to sales staff as per H & O Sales Policy
    •   Scholarship Award Scheme


    Non- Management Staff:

    •   Provident Fund
    •   Gratuity
    •   Leave Fair Assistance
    •   Marriage gift scheme once in a service
    •   Baby feeding scheme
    •   Annual leaves for 14 calendar days in a year
    •   Casual leave 10 days in a year
    •   Casual leave encashment
    •   Medical leave 8 days in a year
    •   Meal subsidy for field staff
    •   Shift allowance
    •   Family day gift once in a year
    •   Eid gift on both Eids
    •   Relocation package: As per group entitlement
    •   Life Insurance: Under group life insurance policy as per group entitlement
    •   Hajj Balloting: After 5 years service through balloting
    •   Pick and drop service: For factory staff where such facility is available
    •   Fair price shop: If available at site



------------------------------------------------------------------------------------------------------- 43
                                                                                           MacDonald’s
    •   Subsidized meal facility for factories if already available
    •   Motor cycle loan facility for non management
    •   Maternity leaves for female employees
    •   Hospitalization though insurance company
    •   At least statutory 10-C bonus
    •   Attendance allowance
    •   2 pair of Shoes per year: For non management except field staff
    •   2 Uniforms per year: For non management except field staff
    •   Incentive to sales staff as per H & O Sales Policy
    •   Scholarship Award Scheme




Compensation:
McDonald uses Broad banding trend of compensation, in this trend wide range of jobs
and salary levels are represented by Bands. So the employee, whose job falls on one of
these grades, gives the pay range listed on that grade and determines his or her salary.
McDonalds has this system of compensation because, broad banding allows for flexibility
in terms of pay, growth and movement.
As there are so many jobs and each job has its own description and value so by making
bands of similar jobs and assigning them the appropriate salaries will make easy for
McDonalds to set the pays of employees. McDonalds don’t apply the Competency-Based
Pay Method because in this method pays are established as according to the performance
of employee such as: If a crew member is working according to the level of manager his
performance is equivalent to manger so their pays will be same.
But McDonalds pay their employees according to the job or level. Mangers own different
higher pays as compared to worker or Crew members. It is very difficult to set pay for
any organization without conducting pay rates. Pay rates are necessary to define because



------------------------------------------------------------------------------------------------------- 44
                                                                                           MacDonald’s
it is better for both employer and employee. Employer sets salaries according to the
market or could be more from market and employer get knowledge about market. Similar
nature of jobs categorized in groups and employee feel secure that he is getting salary
according to market rate or could be more.
McDonalds conduct salary survey, that what other employers are paying for the same
nature of job to there employees. McDonalds pays more to their employees as compare to
market. So, the salary survey is necessary for establishing pay rates. McDonalds has also
given its salary ranges on different jobs in their site. The second step in establishing pay
rates is evaluating jobs .In Job Evaluation jobs are evaluated or compared with each other
on the basis of qualifications, skills, responsibilities and working conditions.
McDonalds follows the Job Classification method of job Evaluation because they have
categorized their jobs into two main classes. McDonalds evaluate its job on the basis of
working hours of their employees more clearly for the crew members they use the part
time job evaluation and for managerial level staff they use full time evaluation. For part
time employees MacDonald’s pay them on the basis of their working hours means hourly
wages. The Full Time Working Employees are given salary on monthly basis they are
known as permanent employees. After job evaluation, McDonalds grouped similar nature
of jobs into pay grades for establishing pay rates. As McDonalds uses the job
classification technique so their jobs are already in a grouped form and they establish pay
grades according to part time and full time jobs. For assigning pay rates to any level of
job, McDonalds uses Wage Curve which shows the relationship between value of the job
and wage price for the job. McDonalds through wage curve assign pay rates to part time
and full time jobs according to the requirement of job. More specifically according to the
job nature of employee such as for part time crew member the pay rate will be different
from full time depending on their work. McDonalds price their managerial jobs on the
basis of their performance of work, skill, knowledge and experience. It is different for all
level of managerial job. Employees' base pay is the most significant portion of their
compensation, McDonald's maintains the competitiveness of base pay through an annual
review of both external market data and internal peer data. Incentive pay provides their
employees with the opportunity to earn competitive total compensation when
performance meets and exceeds goals. The Target Incentive Plan links employee


------------------------------------------------------------------------------------------------------- 45
                                                                                           MacDonald’s
performance with the performance of the business they support. TIP pays a Bonus to top
of employees in their base salaries.


Incentives program:
McDonalds has developed under given People Philosophy for compensating and
motivating their employees and that are:


    •   Respect and recognition.
    •   Values and leadership behaviors.
    •   Competitive pay and benefits.
    •   Learning development and personal growth.
    •   Resources to get the job done.
    •   Incentives for senior management.
    •   Long term incentives.
    •   Medical and hospital facility.
    •   Free furnishing on having a new home.
    •   Provident fund: (ESOP).
    •   Company car program.
    •   Umrah packages.
    •   Recognition program.




Benefits program:


Health and protection:
Health and protection includes the following benefits:




------------------------------------------------------------------------------------------------------- 46
                                                                                           MacDonald’s
        •    Medical Aid
        •    Pension or Provident Fund
        •    Disability Cover
        •    Funeral Cover
        •    Accidental death & dismemberment (AD&D)


Work or life balance:

McDonald's believe in work and life balance and they offer the following programs to
assist their employees:

    •   Annual Leave
    •   Leave of Absence
    •   Educational Assistance
    •   Employee Discount Card
    •   Staff Appreciation Days


Pay and rewards:

McDonalds pay and reward method is fair which is as given:

    •   Highly competitive salary packages
    •   Performance based bonus
    •   Employee of the Month program
    •   Annual employee recognition awards
    •   Opportunity for local and/or international training at all levels




    •   Medical allowance


------------------------------------------------------------------------------------------------------- 47
                                                                                           MacDonald’s
    •       Hospitalization from panel hospitals
    •       Life Insurance
    •       Meal subsidy for field staff up to group 1
    •       Maternity leaves for female employees




McDonalds has a safe environment regarding to health, there are no such serious health
safety threats in McDonalds but they have developed a systematic health and safety
program for those employees specially who work in production lobby.
Such factors could be a health and safety problem for McDonald’s employees:


        •      High temperature

        •      Hygiene

        •      Smoking

        •      Infectious disease

Health and safety system:


McDonalds keeping in view the above factors take the following steps ahead to prevent
their employees from any health hazard:


Ventilation system:
Proper ventilation systems such as exhausts are placed so that the high temperatures don’t
cause any health problem to employees who work in production lobby (cooking area).


Inspection:



------------------------------------------------------------------------------------------------------- 48
                                                                                           MacDonald’s
For the hygiene of office and cooking place per month a inspector from food department
visits to observe the cleanliness system, this is better for employees themselves and the
customers as well.


No smoking rules:
In the office a smoking rule is obeyed for the health protection of employees and
restaurant environment.


Infectious rules:
A medical check up of employees is conducted to know that any employee doesn’t have
any viral disease and if any employee becomes serious ill he/she is granted a leave so that
no other employee could suffer from same problem. When employees are hired in the
training session they are informed with a complete description and safety measures
related to their health.


Safety and security:


For safety and security of employees two areas are considered such as, Inner area of the
office and outside threats. Inside office means that the safety and security of office, like
McDonalds has a production lobby inside their restaurant where they cook or prepare
food so the danger of Fire Explosion is always there for them and as well like all other
offices the threat of Electric Short-Circuit. Also any sort of Criminal Act from
employees. Outside area signifies that if in McDonalds any one enters and makes them
HOSTAGE or Commits Bomb Blast, is a sign of big threat to their employees and
restaurant as well.




McDonald’s safety and security system:



------------------------------------------------------------------------------------------------------- 49
                                                                                           MacDonald’s
McDonalds according to the above mentioned security risks use two basic facilities of
security given as:
        •    Natural Security

        •    Mechanical Security

Natural safety:


Natural security means securing your office architectural area. McDonalds has Security
Guards and Check Post in parking lot.


Security guards:


They have security guards in their Parking Area and at the Entrance Door as well.


Check post:


Also a check post is placed at the Entrance of parking lot.


Mechanical security:


In mechanical security system technological systems or machines are used to enhance the
security system. McDonalds has placed a scanner at their entrance door, CCTV cameras
are also fixed in and outer area of the restaurant, fire extinguishers and stabilizers’ for
short circuit.




Scanner:



------------------------------------------------------------------------------------------------------- 50
                                                                                           MacDonald’s
Scanners are placed at Entrance door for every customer or person to detect any metallic
thing like weapons etc.


CCTV cameras:


Help McDonalds to monitor every movement of customers or any person who is in the
restaurant.


Fire extinguishers:
For the danger of fire explosion Fire Extinguishers and other Aid Equipments are placed
in the office area and production lobby of McDonalds. Fire alarms are also placed.


Stabilizers:
 In the case of electric short-circuit are used to retain the voltage of electricity and any
mishap doesn’t take place.




------------------------------------------------------------------------------------------------------- 51
                                                                                           MacDonald’s
They are committed to attracting, training, developing, and rewarding world class people
for their fast growing business. Employee Relations is a KFC program whose primary
objectives are to develop team building and to instill a sense of camaraderie among
employees.
It also promotes the health and well-being of KFC employees through fun social and
physical activities that give enjoyment and relaxation to KFC staff. Employee Relations
encourages positive employee connections needed to achieve a balanced work and social
life.” Leaders, Assistant Managers, Assistant Restaurant General Managers. Handle
employee relations issues. At KFC they put people first. Their restaurants are run by
people who know and love the restaurant. Manager manages a KFC restaurant within
Company policies and guidelines to ensure sales, service…Hospitality & Catering -
Restaurant Manager.


Benefits for KFC employees:


    •   Employee management skills development
    •   Improved feelings of employee worth
    •   Improved levels of employee morale
    •   Identification of potential drug problems in stores
    •   Reduction in staff turnover
    •   Being seen by the community as making a positive
    •   Support to the organization’s mission & goal of acting
    •   Communities in which employees live and work




------------------------------------------------------------------------------------------------------- 52
                                                                                           MacDonald’s
In any organization employee relation plays a key role. If the employees of an
organization are satisfied it means that the organization could touch to the heights of
success because a satisfied employee will work more passionately.
Collective bargaining is a process in which employee’s union and the management
negotiates with each other and signs an agreement on the labor issues such as pays,
benefits, working or other facilities. There is no such collective bargaining system is
McDonalds because McDonalds don’t have a predefined labor or crew unions.
McDonald’s culture supports anti-union concept.
When a crew member or any lower level employee joins the McDonalds he/she have no
basic knowledge of Unions, but after working for a period of time, when they get familiar
with the culture of McDonalds they become more firm at anti-union concept.
The former CEO and Chairman of McDonalds Peter Ritchie says “Unions stifle
Creativity”; “there is no place for unions at McDonalds”; “ I have spent my entire life
opposing unions”; “I have had some horrible and stressful fights with union leaders, it’s
often very difficult keeping them out” McDonalds has a well systematic pay rates,
benefits and employee needs program so when a new employee comes to join
McDonalds they define every single policy, values, culture and employee benefits or
compensation programs. So he employee working in McDonalds is well-aware of their
procedure of employee relations. More precisely, when McDonalds hire an employee
they make every thing clear and if the employee agrees to work in such environment than
they allow him to work. Unions play an important role in pay-related issues. Most of the
time employees are not satisfied with their pays. So they create problems, although many
different agreements are signed between employees and management. But as in
McDonald’s there are no such unions so the problem related to pay to employees would
be that if a crew member do wage bargaining with employer individually
In McDonalds most of the employees don’t favor for this method because they typically
believe that such strategies would be:
        •    Bad for morale

        •    Difficult to administer

        •    More time consuming


------------------------------------------------------------------------------------------------------- 53
                                                                                           MacDonald’s
        •    Encourage discrimination or favoritism

Although on other hand some employees believe that it should be done on the basis of:
On-the-job performance or workplace effort. Like if an employee performs well his/her
pay should be increased through individual bargaining, that the employee himself should
demand for more pay. But the management or managers of McDonalds believe that pay
is not a subject on which employees negotiate individually, because according to them
they have no discretion to enter into such arrangements that involve altering individual
crew or small group wages on the grounds of performance. In McDonalds when
employee is recruited they specially discuss the terms and conditions about the pays and
negotiation issues on pays. McDonalds has a comprehensible strategy of occupational
health, safety and security of employees.




Comparison between McDonald's and KFC Analysis:


------------------------------------------------------------------------------------------------------- 54
                                                                                           MacDonald’s




Recruitment for executive post:


For executive post KFC mostly make search through various industries while
McDonald’s mostly go for internal recruitment for executive post.


Interview:


The interview of McDonalds consist of situational questions only while it is not
necessary in case of KFC .So KFC can have variety of questions including behavioral,
situational, puzzle etc and there are more chances of effective employee evaluation .


Orientation:



Orientation time of KFC ranges from 1 to 6 months and Macdonald’s orientation time
ranges from 5 to 6 months. So KFC have more variations in orientation time period as
compared to McDonalds depending upon the employee caliber.

Development:


McDonald’s offer more development opportunities to employees by summer crash
courses and crew leader development courses which are not offer by KFC.


Empowerment:

------------------------------------------------------------------------------------------------------- 55
                                                                                           MacDonald’s


There is more empowerment of employees in McDonalds by direct communication to
head of department and employment at will.




Performance appraisal:


Macdonald uses graphical rating scale as well as 360 degree feed back for performance
appraisal but KFC          uses only 360 degree feed back. So in comparison performance
appraisal chances for being effective are more in McDonalds.



Organizational Goals:


Both McDonald's and KFC share the same basic organizational goals of profitability,
sales volume, fast and courteous service, and cleanliness. There are minor variations to
these goals by both companies.


Organizational Structure:


When observing McDonald's and KFC, the organizational structures of the two
restaurants were very similar. There appeared to be a crew leader who was a non-
managerial employee and, there was a manager who was present behind the counter. The
managers of the restaurants seemed to be in control of every aspect of the entire food
service process. He had keys to the store, and registers, and also was the only one to take
phone calls.




Technology:




------------------------------------------------------------------------------------------------------- 56
                                                                                           MacDonald’s
Both McDonald's and KFC are on the cutting edge of technology. They both employ state
of the art cash registers and both have electric timers built into their cooking machines.
Although the cooking styles vary between KFC and McDonald's, the method of
production is the same. Large batches of food are cooked at once then placed under heat
lamps or put in the microwave when an order is placed. Both stores have the same drive
through technology with a speaker and a well-lit menu to relay the message to the cooks.
Usually whoever takes the order is also the same person to collect the money; however, a
different person usually puts the order together for the customer.


Employee Motivation:


The motivation of both stores for employees to perform well is hard to ascertain from just
observing, but it appears somewhat obvious. The people working in these establishments
appear to have a lower social economic status, and the fact that a paycheck is coming at
the end of the week may be the only motivation they have. The stores do have an
"employee of the month" plaque on the wall, but it is doubtful that this is motivation to
strive day in and day out for. There is also the fear of potentially losing their jobs if they
perform sub standard.


Communication:


Both stores employed a very open communication policy. Employees were talking,
sometimes shouting at one another to be heard. The management was openly involved in
the employees routines and the employees felt no barriers to prevent their communication
with the manager. Sometimes in both stores, there would be a break down in
communication somewhere along the line and that would result in extended waiting times
for customers and sometimes, screwed up orders.


Environment:




------------------------------------------------------------------------------------------------------- 57
                                                                                           MacDonald’s
The environment at McDonald's and KFC seems to be a simple, yet unstable one. It is
apparent that the majority of people who work there, are not choosing their employment
as a career option. Therefore, the workforce is constantly changing and adapting to new
employees and new situations.


Policies/Procedures/Rules/Standards:


Standardization seemed to be the key at both stores. One can walk into any McDonald's
in the country and find that a "Big Mac" is the same everywhere. Similarly, a "Whopper"
will taste the same at every location. Therefore, the ingredients, and cooking methods
must remain constant throughout. There can be no variation. Rules and procedures were
posted on clear signs and made directly available to the employee.


Organization Climate:


There seemed to be individual autonomy for the most part at both stores. However, the
reward system was not easy to identify. They seemed expected to do their job
consistently and accurately, perhaps in fear of punishment. They received cooperation
from management as long as they were working diligently.




------------------------------------------------------------------------------------------------------- 58
                                                                                           MacDonald’s
HR POLICIES AND PRACTICES OF MCDONLADS
The HR polices and practices involve certain core tasks to fill such as: Recruitment,
Selection, Evaluation, Performance, Compensation and certain other factors.
The HR department of McDonald’s fulfills all the requirements of these tasks or
functions in a true sense of the meaning.
McDonald’s strongly believes in the well being of people and its workforce and that is
one reason why it is the leader in the fast food industry and it proves that the strategies
the company has chosen are right and efficient for their business.


EVALUATION OF HR POLICIES AND PRACTICES OF MCDONALDS
The policies and practices of McDonalds which we discussed above in the report are
according to our literature all their strategies of HR meet up with are literature of course
because during interview we asked all their HR practices according or comparing to our
literature.


SUGGESTIONS
After critically evaluating the HR Functions of McDonald’s we recommend the following
suggestions according to the each section of HR:
JOB ANALYSIS: For job analysis we recommend that McDonalds should also include
Performance Standards and Human Requirements which would help them more in
making job description and specification.


JOB DESCRIPTION AND SPECIFICATION: Well their job description and
specification is not clear they have intermingled it. In Job Description they have written
about the skills required in an employee not about the duties he/she would have to
perform. Similarly in Job Specification they have just written general information not
about the skills and personality traits.


PLANNING AND FORECASTING: In planning and forecasting McDonalds is using
trend analysis method for personnel needs but according to our opinion Computerized
Forecast should be used because McDonalds is a large organization and they should


------------------------------------------------------------------------------------------------------- 59
                                                                                           MacDonald’s
estimate their need of employees through computerized system it would be easier for
them.


TESTING: All over McDonalds has a good formal testing system but in our view for
crew members specially who deal with customer care area a Communication Skill Test
should be taken which includes testing of accent, language, talking way and facial
expression of employees.


INTERVIEW: McDonalds should also ask Behavioral Questions from the candidates so
by knowing their past experience they could judge their attitude and mental abilities more
accurately.


COMPENSATION & BENEFITS: For the employees at lower level like crew
members, a proper Medical Check-up after every month should be provided to them and
their pays should be increased comparing to the economic conditions of country. For
higher level employees a Life-insurance policy should be made.
After our group observed the interactions between management, employees, and
customers at both operations, we discovered a few areas where KFC and McDonald’s
both needed improvement. To begin with, our McDonald’s experience was overall
enjoyable, yet a few small, but important, details should be considered. Most of the
employees’ uniforms were worn properly and neatly, but the rest were just plain sloppy.
Shirts should be tucked in and clean, and hats should be worn the way hats were meant to
be worn. This would show that employees value their jobs, and take them seriously.
While we were dining, we could not help but notice the loud, high pitched, constant
beeping noises coming from the kitchen area. These extremely irritating noises did not
stop the entire time. This prevents the guests from enjoying their meals in a soft, relaxing
atmosphere. Quiet background music at McDonald’s would probably help the ambiance a
bit and offset some of the noises coming from the kitchen. We also noticed that even
though it was not busy, there was not a manager in sight. In fact, we can not be sure that
one was on duty at the time of our visit. At KFC it was nice to see the manager working
along with the employees by taking orders and preparing food. The major problem that


------------------------------------------------------------------------------------------------------- 60
                                                                                           MacDonald’s
we found with KFC was the lack of menu consistency. The location that we visited did
not offer salads, while most other KFC’s do. We feel that if a salad is available at one
location, then a customer should expect to be able to enjoy the same salad at any KFC. It
is comforting to a customer to know that the food will be the same (in preparation and
availability) at whichever store he or she chooses to visit. We did enjoy how they were
willing to accommodate our personalized orders, but it is not appropriate to charge for
one slice of tomato or lettuce. McDonald’s did advertise quite a bit of community
involvement and service. At KFC we did not see signs of any type of contribution to the
community. People may think that the company is greedy and only cares about profit. A
charity would show that KFC cares about the community. In addition, both of these
restaurants desperately need to incorporate the fundamentals of great service into their
game plans. It would make a tremendous difference if a cashier would very simply smile
and say “thank you” after returning your change. From the expressions on the faces of
some of the employees we felt as if we ruined their entire day just by walking through the
door! Personality and attitude should be major considerations when hiring employees.
Hire only those who will take pride in their jobs, be professional, and treat the guests very
well. Our final recommendation for both operations is to adopt a “Total Quality
Management” philosophy. Food should come out with the right ingredients and at the
correct temperature. It is a waste of time and money to make an order over again if it is
not perfect the first time. With better training and communication there should be no
reason for orders to be less than perfect. The proper attention could be directed to the
next customer waiting in line. If things are done correctly the first time, it will save
aggravation for the guest, who, by the way, will remember that his order came out exactly
how he wanted it. Basically, just take care of the customer. Give employees the power to
do whatever it takes to make them happy. Exceed their expectations and, in return, you
will have a life long patron. He will be back again, and again, increasing long run
profitability. This concept should be applied to McDonald’s as well as KFC, to help
attain their corporate goals.




------------------------------------------------------------------------------------------------------- 61

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:55
posted:3/12/2012
language:English
pages:61