Human resource management of McDonald Essay

MCDONALDS companionshipMcDonalds confederacy is the worlds largest chain of hamburger fast food restaurants which serves approximately 68 million nodes on daily around 119 different countries and declares 30,000 restaurants worldwide. McDonalds headquarter is in Oak Brook, Illinois, the States and company was started as a barbecue restaurant in 1940 by Richard and Maurice McDonald. In 1948, deliverers of the company reorganized the cable to a hamburger stand and thereafter in 1955 businessman Ray Kroc joined the company as the first franchise agent. Ray Kroc purchased the chain from the McDonald brother and made it grow worldwide. (McDonald Corporation)The corporation itself each operates a McDonalds restaurant or by a franchisee. McDonalds Corporation taxations atomic number 18 obtained from the rent, tips paid by the franchisees, royalties and the sales from the restaurants operated by McDonalds Corporation. McDonalds Corporation had annual revenues of $28.15 billion in t he year 2013 whereas their profits were $5.6 billion. (Yahoo finance) McDonalds product line includes selling hamburgers, cheeseburgers, french fries, chicken items, breakfast items, desserts, milkshakes and soft drinks. ascribable to changing consumer taste and to survive in this agonistical and ever changing environment McDonalds Corporation has added salads, wraps, fish, fruit and smoothies to its menu list. (McDonald Corporation)PURPOSE OF MCDONALDS CORPORATIONThe main purpose of McDonalds Corporation is to serve fast food and to do everything that can be through with(p) to respect the node and to have customer trust in their brand.WHY I CHOSE MCDONALDS CORPORATIONFollowing are the reasons why I choose McDonalds Corporation 1. McDonalds Corporation is one the world largest and leading fast food chain 2. McDonalds Corporation employs 1.8 billion people worldwide and they have one of the best HR practices 3. McDonald sells al intimately 75 hamburgers every second which attracts any HRM student to study their HR practicesBUSINESS MODEL OF MCDONALDS CORPORATIONMcDonald earns its revenues from investing in properties, as a franchiser of a restaurant and as an operator of restaurants. Almost 80% of the company restaurants are operated by franchisees, which are bound to pay 4% of their revenue to McDonald, as well as the rent. In most of the cases, McDonald owns both the building and land which results in a stable flow of income making the franchisees bear most part of the risks. The remaining 15% of restaurants are owned and consumely operated by McDonald. Considering the business model of other fast-food chains the business model of McDonald is different.Other than franchisee fee and the marketing fees that are calculated as sales, McDonald do sometimes collect rents that are excessively considered as sales. Other than revenues generated from the franchise agreement, McDonald may also own or they can lease the property where McDonalds franchises are locate d. According to the policy of McDonald, the business does not involve itself in making any direct sale of food or any other material to its franchisees but it organizes the food and materials required for the franchises through an approved third approved logistic operators. McDonalds is also involved in identifying the locations, developing new products and quality.HUMAN RESOURCE MANAGEMENTHuman mental imagery management is an approach by which companys most valued assets (people) are managed. For any company to achieve success its human resource has to individu ally and collectively contribute and this can provided be achieved through proper management. Proper management of company human resource not only help the company to achieve its objective, but they achieve it with great efficiency. Human Resource Management helps the organization to achieve its desired goals and successby the help of its people. Human Resource Management, therefore, is utilized in the creation of end on the plans of the organization. These plans are linked with employee relationships, recruitment, training and development, performance management and rewards for employees. Therefore, human resource strategies developed are to be in line with organization business plan to help the business to be successful.MCDONALDS HUMAN RESOURCE MANAGEMENTMcDonalds Corporation in order of battle to achieve success and competitive improvement developed it human resource management strategy focused on four areas A) STRATEGIC HUMAN RESOURCES MANAGEMENT McDonalds human resource strategies and practices were synchronized to the company business strategy and thereafter the HR department helped to realized the business plan or strategy by forming it into company HR practices in relation of personal development and hiring. B) MANAGEMENT TRANSFORMATION AND CHANGE One of the way HR function of McDonald helped organization to achieve competitive advantage is by identifying the changes required and thereaft er implementing it. This strategy served as a catalyst for company successful growth.C) EMPLOYEE MANAGEMENT HR department tried to understand the task which employees face daily and what are their needs and thereafter making an effort that their problems are solved and their needs were met. D) MANAGEMENT OF ORGANIZATION ADMINISTRATION It was made incontestable by HR department that the process of employees hiring, training, evaluating, rewarding and promotion were intentional in such a way that they were in line with the strategies of McDonald. In order to align these four focus area following things were done by McDonald 1. PERSONNEL STRUCTURE As the business model of McDonald shows that it generates most of it revenues from franchising, therefore, there are three categories in their structure which are corporate ply, restaurant workers and franchisees.The control supply which either operates from company headquarter or regional offices is responsible for controlling and manag ing the franchises to fudge sure that standards of McDonald are maintained and the products are delivered at time. Restaurant worker constitutes the biggest part of company structure. They are controlled through supervisors who report to assistant manager. Most of this ply works on part time basis and are paid on an hourly basis. Finally, thefranchises that are managed by their owners but according to the standards set by McDonalds.2. PERFORMANCE MANAGEMENT In order to touch sure that productivity is always high the HR department has put a process in order to know which staff is not working according to the desired expectations and what solution is to be implemented to bring that staff up to the required expectations. This is done by performance review of employee that can be done anytime or the interim performance review which is carried out after each six months. found on these performances reviews it is decided which staff will get promoted which staff requires training so hi s performance can be increased. This way of management not only serves as motivation for employees, but it also creates a competitive environment among the staff which in turn helps the productivity of employees to increase.3. MOTIVATION & REWARD Since most of McDonald staff have low wages and are paid on an hourly basis which results in large staff turnover, therefore, company has to make sure that their staff is motivated and they keep them motivated by awarding staff with different reward schemes and other perquisites. This not only increases their motivation to work for McDonald but also helps them to increase their productivity4. TRAINING McDonald spends almost $10 million each year and trains approximately 55,000 employees to make sure that make sure that their employees have priceless skills that are needed. At first all new employees are given introduction about the company and thereafter staff trainers train them properly to make sure they develop all required necessary sk ills to work in the organization. It is made sure thereafter that these employees know how to use the latest foodservice equipment and they understand all McDonalds operational procedures.To make training much(prenominal) easier McDonald has published step-by-step manuals, video tapes and quality reference guides which explain each and every detail of the line of business process. Employees are also taught communication, interpersonal and organizational skills. This enables their employees to do their job at the best possible way and, therefore, they serve the customer with highest standards making McDonalds customerservice as one of the best in fast food supply companies.5. MANAGEMENT DEVELOPMENT McDonald has designed McDonald Development Program (MDP) to develop lead skills within employees so they can be successful leaders. Various courses of this programme are held for employees of different level of management and for franchisees.CONCLUSIONMcDonalds now a twenty-four hours is one the fastest growing corporation and this is due to the reason of proper management of their human resources. This clearly shows that the corporation is on the right track and they have been able to keep the motivation levels of their employees high. This has been done by proper reward schemes for the employees based of their performances. Proper training is provided to the newcomer making it much easier for new employee to pick out up and to get comfortable with the job quickly.However, if McDonalds Corporation continuously strives to further improve its HRM strategies then McDonald can continue to grow at much more faster pace. Hence it can be concluded the HRM strategies of McDonalds Corporation is in line with their business model and growth strategies and this can be verified from their success up to this date.REFERENCESIngmar, B., Carl, F., & Hyeon, J., (2007). Institutional theory and MNC subsidiary HRM practices evidence from a three-country study. _Journal of Interna tional Business Studies,38,_430-436Paula, C., (2014). Many moving parts Factors influencing the effectiveness of HRM practices designed to improve knowledge transfer within MNCs. _Journal of International Business Studies,45,_ 63-72Seeking Alpha (2014), McDonalds Business Model, Valuation And Minimum Wage Legislation, Retrieved March 22, 2014, fromhttp//seekingalpha.com/ obligate/2052223-mcdonalds-business-model-valuation-and-minimum-wage-legislationUK essays (2003), Evaluating Human Resource Strategies Implemented by McDonalds, Retrieved March 22, 2014, from http//www.ukessays.com/essays/business/evaluating-human-resource-strategies-implemented-by-mcdonalds-business-essay.phpMcDonalds (2014), Corporate Info, Retrieved March 22, 2014, from, http//www.mcdonalds.com/us/en/our_story/Corporate_Info.htmlYahoo finance (March 2014), Income Statement, Retrieved March 22, 2014, from, http//finance.yahoo.com/q/is?s=MCD+Income+Statement&annual