RESEARCH ON RELATIONSHIP AND MANAGEMENT

IN MCDONALD

STUDENT NAME: Liu Xin

STUDENT NUMBER: G20387757
COURSE NAME: Business administration
SUPERVISOR: Mr. Joe Heng
DATE OF SUBMISSION: September 7, 2010

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 ACKNOWLEDGEMENT
Totally, I have been Singapore for more than two years. For these two and half of years studying in
SHINES education institutes, I have gained my knowledge, capability and friendship with people
coming from the entire world. I have completed 22 modules in my course and except this one; I
have done 22 group projects with my friends.
Here, first of all, I want to thank SHINES college gives me opportunity to study at overseas to
realise my dream, what’s more, I am really appreciated those lecturers who have assisted in me or
my assignment and providing problem solving methods from the bottom of my mind, especially for
some lecturers who really help me a lot, like Lecturer. Joe Heng, their selflessness, understand and
excellence in teaching have built foundation to what I have right now and what I will have in my
future, and I also want to thank them to read and give me points to my capstone.
Then I also want to thank my consultant in SHINES college, she have assisted me in dealing with
many issues before, like application for students pass, preparation in interview at ICA, preparation
in application of working pass and so on, I am really appreciated for her selfless assistant, and I
wish she can have nice days in Singapore.
In the end, I want to thank those truth friends who are willing to do assignment with me, I will
never forget those days we discussed together and help each other together, they have done a lot for
me and we still could be together to fulfil our common dream, to strive future and to defeat setback
and difficult even we come from different country and grow up under different culture and
background, I just want to say they are really meaning something to me, I am not able to achieve to
the end without them, here, I also wish they can make their dream come true.

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 STUDENT DECLARATION
Here, I solemnly declared all of material and information collected to this capstone are not copied
form others and all of the information I collected from website are marked with references. I am
restricted to conduct full and proper research and express the findings or results of my academic
research in this report in my own words with full acknowledgement of the authors and source. If
there is any plagiary included, capstone can be rejected without reason.

Student’s signature:

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 CONTENTS
ACKNOWLEDGEMENT.................................................................................................................................................2
STUDENT DECLARATION............................................................................................................................................3

IN MCDONALD.................................................................................................................................................................1

ABSTRACT........................................................................................................................................................................6

INTRODUCTION..............................................................................................................................................................8

PROBLEM STATEMENT..............................................................................................................................................11

OVERVIEW.........................................................................................................................................................................11

OBJECTIVES AND AIMS..............................................................................................................................................12

OVERALL OBJECTIVE: TO IMPROVE HR SYSTE WITH COORDINATED ORGANIZATIONAL BEHAVIOUR......12

BACKGROUND AND SIGNIFICANCE.......................................................................................................................13

RESEARCH DESIGN AND METHODS.......................................................................................................................15

OVERVIEW.........................................................................................................................................................................15
TIMEFRAMES AND ACTION PLAN...........................................................................................................................................15

STRENGTHS AND WEAKNESSES OF THE STUDY...............................................................................................17

CONTEMPORARY HRM..............................................................................................................................................18

CONTENPORARY OB...................................................................................................................................................25

Intrinsic and extrinsic motivation..............................................................................................................................27

The incentive theory of motivation............................................................................................................................28

REFERENCES.................................................................................................................................................................34

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 ABSTRACT

The reputation of any business ultimately depends on the quality of its products. High quality
products need high quality people to create, design, produce and deliver them. So if a business is to
maintain its reputation it needs to do well at recruiting high quality employees. For any business
offering a large element of personal service, an ability to recruit, train and retain high quality staff is
particularly vital.
This Case Study looks at how McDonald's, the world's largest and fastest growing global restaurant
chain; uses recruitment and training policies with practices that are designed to attract, identify,
develop and retain the high calibre of staff its line of business requires.
McDonald's opened its first UK restaurant October 1974. In December 2004, there were over 1330
McDonald's restaurants operating in the UK. Around 60% of these are owned and operated by the
company. The remainder are operated by franchisees.
McDonald's is a large scale employer. In September 2004 in the UK the company-owned
restaurants employed 43,491 people: 40,699 hourly-paid restaurant employees, 2,292 restaurant
management, and 500 office staff. McDonald's franchisees employed a further 25,000 people.
A typical McDonald's restaurant employs about 60 people. Most employees are paid by the hour
and are referred to as 'crew members'. Their primary responsibility is to prepare the food, serve
customers and carry out tasks for the efficient running of the restaurants.
Other hourly-paid employees who work alongside them include Training Squad Members, Dining
Area Hostesses, Party Entertainers, Administrative Assistants, Security Co-ordinators, Maintenance
Staff, Night Closers, Floor Managers and Shift Running Floor Managers. These employees carry
out more specific job functions. Their overall role, however, is to ensure the restaurant runs
efficiently.
The remaining restaurant-based employees are salaried managers. It is their responsibility to
manage the restaurant's operations, crew and business performance.

Each McDonald's restaurant is structured as an independent business, with restaurant management

responsible for accounting, operations, inventory control, community relations, training and human
resources.

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The remaining company employees are salaried office staff, working in either the Corporate or
Regional Departments.

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 INTRODUCTION

The foundation of business has changed. Low unemployment rates, changing workforce
demographics, and employee’s desire for work life balance among many other people factors have
accelerated the HR evolution. This economic trend and shift in personal values has brought about an
unprecedented emphasis on employees. Fortunately, I-O psychologists have seized this opportunity
to show their worth to organizations by demonstrating how meeting these values and needs, affects
bottom line results. Thus, I-O psychologists have taken on a dual role in organizations: change
agents driving the change of organizational cultures to focus on people, and measurement
specialists connecting people practices to business results.

Tying people-related initiatives to business results will allow us to maintain the momentum around
people even when the economy takes a downward turn. David Ulrich, the HR strategist, captures
this sentiment perfectly. Ulrich writes the impact of HR practices on business results can and must
be measured. HR professionals must learn how to translate their work into financial performance.
The focus on measurement and people is promising news for I-O psychologists. Many companies,
large and small are hiring I-O psychologists for the first time. The McDonalds Corporation is one of
these companies.

McDonalds is facing the same challenges that many industries face how to obtain and retain a
quality workforce in a time of low unemployment in order to achieve the system and customer
growth desired. To achieve their business goals in upcoming years, McDonalds has identified
People as one of the three global corporate strategies for success. By identifying their employees as
a competitive advantage, McDonalds has committed to making this happen by aligning human
resource programs and practices with a key business strategy called the People Promise.

As in the past, much of McDonalds success is the result of delivering quality, quick service,
cleanliness, and value. In the quick service restaurant industry, McDonalds has set the standard for
operational excellence by identifying and measuring key indicators of product quality, and fast and
accurate service. These indicators are familiar to most businesses as they fall in the area of financial
performance, operational performance, and customer satisfaction. However, McDonalds continues
to enhance its strategic position by further evaluating additional factors critical to the equation, such
as an employees perception of the organization and store environment on the customer experience.

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Within McDonalds, these issues and others are being addressed by establishing strong partnerships
between its HR Design Center and other parts of the.

In 1997, McDonalds HR Function was restructured to increase customer focus, enhance quality
service, improve cost effectiveness, eliminate redundancy within the function, and build strategic
HR capabilities needed to improve overall business performance. To accomplish this HR was
divided into three groups: the Service Center focused on administrative, transactional activities, and
consulting to franchisees, HR Business Partners providing strategic HR consulting to line and staff
organizations, and the HR Design Center. The HR Design Center is a center of excellence
employing a group of HR subject matter experts that partner with other departments to develop,
test, and implement leading-edge people systems and tools designed to improve overall business
results. Through these partnerships, the Design Center has contributed by designing core HR
processes for the company, leveraging best practices, and most importantly for I-O psychologists
measuring success.

The Design Center is divided into four practice areas Measurement and Organizational
Effectiveness, Leadership Assessment and Development, Competency-Based People Systems and
Culture, and Recruitment and Retention. Projects within these practice areas are designed to impact
all levels of the organization from the CEO to the front counter employees in the restaurants.

The Measurement and Organizational Effectiveness group has taken on such projects as the creation
and implementation of an annual employee commitment survey, creating a functional Human
Resources Scorecard and participating in a data standardization initiative, to name a few. In
addition, in the past 2 years, partnerships with other departments have facilitated research projects
aimed at identifying people practices and approaches that substantially impact outcomes such as
turnover, productivity, customer satisfaction, sales, and profitability. This research has been critical
to developing a competitive business model that places emphasis not only on financial and
operational factors, but also on people factors that improve business results by driving employee
commitment, retention, productivity, and customer loyalty.

Another practice area that I-O psychologists have played a critical role in is with Leadership
Assessment and Development. This practice area houses the executive succession planning process,
senior management 360 feedbacks and coaching, as well as other senior leadership development
programs. I-O psychologists in this practice area are involved in assessing the development needs of
our senior leadership and measuring the success and value of such programs. Elaine Sloan wrote an

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insightful article in TIP entitled, Identifying and Developing High Potential Talent: A Succession
Management Methodology that describes much of the work in this area.

The Competency-Based People Systems and Culture practice area uses I-O psychologists for
competency development associated with selection, performance development, assessment, and
succession planning. By implementing competency-based people systems, McDonalds is building
intellectual capital, providing the tools needed to help each person deliver business results, and
making the investment required to support continuous learning and development as a business
strategy. I-O psychologists contribute through identifying development needs, targeting
development curricula, as well as by leading other more typical I-O projects such as developing
staffing models, profiling job competency requirements, and designing performance appraisal
instruments. The People Promise initiative also lies in this practice area. Partnering with all
functions of the organization, I-O psychologists are facilitating this culture change initiative by
identifying metrics that are meaningful to everyone in the organization and measuring the success
of these key strategies.

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 PROBLEM STATEMENT

Overview

The relationship between organizational culture and organizational structure is an important theme
that is often overlooked. The two can be difficult to clearly distinguish from one another and even
more so to clearly define within an institution. Organizational structure works within an
organizational culture, but it is not completely separate. The two are very much intertwined.

Organizational culture is more of a larger picture, a more general term that refers to a large umbrella
of smaller topics and issues within an organization. The structure refers to the infrastructure, and the
various methods and practices within that infrastructure, that helps an organizational culture run
with the efficiency and consistency that should be the hallmark of any healthy organizational
structure, whether it is in a corporation, sports team, or any other set up that is large enough to
create its own organizational culture.

This makes the structure an integral part of any organizational culture, but also narrows out a very
specific segment of the culture as its own responsibility. Organizational structure will deal primarily
with the set up of the culture. How management works, which specific responsibilities supervisors
have, how a complaint is passed through the ranks-these are all issues within the organizational
culture that are directly tied to how an organizational structure works. The structure is not limited to
those three examples, but it would certainly include all of them.

Another common way to describe how structure works is to say that organizational structure is the
way in which the interrelated groups within and organization are set up to allow them to function
smoothly from a larger standpoint. The two main purposes of a successful organizational structure
is to ensure effective communication between various parts of the company, as well as to increase
coordination between different departments.

The next level is bureaucratic, which is where there is larger organization which requires a degree
of standardization in paperwork, processes, etc. While bureaucracy has a negative connotation, it
can be a good thing in small doses, especially in tackling issues that will become recurring themes
in larger businesses. There is also the post bureaucratic, which has a more nebulous definition and is
seen as more of a theoretical term, but might be referred to more recent, cultural based models of
leading.
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 OBJECTIVES AND AIMS

Overall Objective: TO IMPROVE HR SYSTE WITH COORDINATED

ORGANIZATIONAL BEHAVIOUR
Specific goals:

a) To analyse the need for HR planning, the information required and the stages involved in
this process.
b) To evaluate the interview as a selection technique and discuss a range of alternative
selection methods available.
c) To evaluate selection practices and procedures in two organizations comparing these to
“best practice”.
d) To evaluate the process of job evaluation and the main factors determining pay.
e) To identify a range of rewards system
f) To explain the link between motivational theory and reword, which one in your opinion
company`s adopt
g) To explore organizational approaches to monitoring performance.
h) To evaluate exit procedures used by two organizations comparing these to best practise.
i) To analyse selection criteria for redundancy in McDonalds.

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 BACKGROUND AND SIGNIFICANCE
Performance Influencing Factors, or PIFs, are factors that combine with basic human error
tendencies to create error-likely situations. In general terms PIFs can be described as those factors
which determine the likelihood of error or effective human performance. It should be noted that
PIFs are not automatically associated with human error. PIFs such as quality of procedures, level of
time stress, and effectiveness of training, will vary on a continuum from the best practicable to
worst possible. When PIFs relevant to a particular situation are optimal then performance will also
be optimal and error likelihood will be minimised.
There are factors which will act to influence an individual’s performance and behaviour:

• Ability---Character traits, skills and knowledge which are used in the performance. It is
always present and will not vary widely over short periods of time.
• Effort---The amount of manual or mental energy that a person is prepared to expend on a job
to reach a certain level of performance.
• Motivation---Many people who are not motivated keep their performance to an acceptable
level by expending only 20-30% of their ability. Managers who know how to motivate their
employees can achieve 80-90% ability levels and consequently higher levels of
performance.
• Equity & Expectation---Again, detailed notes elsewhere. Basically, people expect to be
treated equally, within the company and as others are in similar companies; they expect to
get a certain reward for a certain effort; and they expect to get promoted if they undergo
training. All these factors are inter-related and affect the amount of effort people are
prepared to put in.
• Task, or role, perception---The direction in which the person wishes to channel his or her
effort and ability.
• Environmental factors

Those factors over which an individual has no control like:

a) the job may have been completed under severe time constraints, with a lack of adequate
resources, or by using obsolete equipment;
b) there may have been conflicting priorities or information overload, such that the individual
was confused and under stress;

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c) other staff and departments may have been less than cooperative;
d) the restrictive policies of the organisation may have prevented the individual from using her
initiative and imagination to the extent that she wished;
e) the quality of the supervision exercised may have been defective - some people need
encouragement and support, whereas others like to be left to get on with the job.

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 RESEARCH DESIGN AND METHODS

Overview
Hr planning and reword system

Timeframes and Action Plan

In order to collect primary data and secondary data, the researcher has made an action plan for the
collection of data below and two kinds of data collecting activities will be conducted at the same
time:
For collection of Primary Time frame
data:
Objective/purpose setting The main purpose to collect primary data in this 1 days
research which is to make sure the possible reason to
drag restaurant revenue down, and following this
line, to make some proper recommendation on how
to increase restaurant`s reputation and influence by
enhancing the relevant points.
Proactive action The design and justify of the questionnaire will take 2 days
about one week to complete. Then the survey with 50
copies of questionnaire could be taken two weekends.
Main activity In order to collect information by questionnaire with 14 days
respondents. I will plan to do the survey with the
customers in human traffic place especially with
those people who prefer usually shopping or eating at
outside.
Population 50
Budget Around S$100
For collection of
Secondary data:
Objective setting To do the secondary research and to gathered the 1 days
information that we needed to define the causes of
the problems by going through some relevant
websites and business magazine and newspaper.
Schedule activity To collect information from the Internet and business 8 days
magazine and newspaper such as: the number of
another restaurant, customers` mindset about
restaurant quality, the ease of satisfaction about
customers in restaurants
Budget Less than S$20

Code of ethics for the conduct of the study

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For the code of ethics for the conduct of this questionnaire, I have addressed the problems at the
following three stages of research: examination of validity; implementation; and reporting and
publishing. Most of the problems addressed in this paper are issues in terms of ethical validity. In
our opinion, many of the issues addressed in this questionnaire are related to the essence of research
ethics, such as the protection of the respondents' voluntariness and privacy, whether or not the
respondents' consent to participate in the study has been obtained, and whether the due process of
ethical review has been followed. In order to discuss such issues, we must first provide answers to
the following questions: How do we define harm? How far should we respect an individual's right
to control the circulation of information relating to him? Which parts of the research procedure
should be included in the report? How can we seek a balance between the progress of medical
science and the protection of the rights of individuals?

Although the issues addressed in this questionnaire are not that serious, they are important ethical
issues that require careful consideration and comprehensive discussion. I make conclusion for the
present in this research is that we must have a true understanding of research ethics developed in the
past as well as nurture our own ethical sensibility to promote the appropriate use of questionnaires
in research. Further consideration will be required on what actually needs to be done for it. Each
researcher in charge of this type of research must carefully consider its ethical validity while
keeping the balance between progress in medical science and health care and the protection of the
subject's human rights. Moreover, not to mention, the purpose of the research should be accountable
and socially acceptable and should serve the needs of the society. Research that is heavily profit-
oriented or is conducted out of simple curiosity will probably have difficulties meeting the ethical
requirements of society. The use of personal information for the sake of public interest and the
protection of respondent's human rights must be balanced and this can only be done by the
collaborative effort of society as a whole. Therefore, more opportunities should be provided for
ordinary citizens, researchers, ethicists, and experts from other fields to get together and exchange
opinions about this topic.

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 STRENGTHS AND WEAKNESSES OF THE STUDY

Some disadvantages of questionnaires:

• Questionnaires, like many evaluation methods occur after the event, so

participants may forget important issues.
• Questionnaires are standardised so it is not possible to explain any points in
the questions that participants might misinterpret. This could be partially solved by
piloting the questions on a small group of students or at least friends and colleagues. It
is advisable to do this anyway.
• Respondents may answer superficially especially if the questionnaire takes a
long time to complete. The common mistake of asking too many questions should be
avoided.

Some advantages of questionnaires:

• The responses are gathered in a standardised way, so questionnaires are more

objective, certainly more so than interviews.
• Generally it is relatively quick to collect information using a questionnaire.
However in some situations they can take a long time not only to design but also to
apply and analyse.
• Potentially information can be collected from a large portion of a group. This
potential is not often realised, as returns from questionnaires are usually low.
However return rates can be dramatically improved if the questionnaire is delivered
and responded to in class time.

So finally, the researcher chooses to use questionnaire as a survey method.

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 CONTEMPORARY HRM
Human Resource planning is the process by which the leader of an organization manages and leads
the people who will be responsible for implementing the strategies necessary to fulfil its mission
and reach its vision. The reasons why organizations have to plan for human resource due to:
• The shortage of certain categories of employee’s variety of skills despite the problem of
unemployment.
• The rapid changes in technology, marketing, management and the consequent need for new
skills and new categories of employees.
• The changes in organization design and structure affecting manpower demand.
• The demographic changes like the changing profile of the workforce in terms of age, sex,
education.
• The Government policies in respect to reservation, child labour, working conditions.
• The labour laws affecting the demand for and supply of labour.
• Pressure from trade unions, politicians.
• Introduction of lead time in manning the job with most suitable candidate.
A human resource plan is a systematic process of matching the interests, skills and talents of
individual community members with the long-term goals and economic opportunities in the
community. Like all CED activities, creating a human resources plan needs to involve the relevant
community sectors, so that their participation and input will lead to strong community support.
Based upon an assessment of community assets and limitations, a plan aims to ensure a good fit
between program designs and the results that are sought. Recognizing that learning and skill
development is a systematic building process, a plan can also ensure that the community provides
the necessary comprehensive continuum of skill development. This implies, for example, that when
staff working in McDonald completes a personal development program, a succeeding step within
the local human resource program uses that accomplishment to teach a new set of skills that are part
of the path to employment and to other contributions to the community.
There are benefits to have a clear human resource planning including like:
• Highlighting opportunities for strategic partnerships that allow communities and other
partners to share the benefits, risks training costs.
• Providing for the small successes that are encouraging and motivating for the community
and can show funders, community members and others that the program is on track.

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 • Making it easier to evaluate process especially from feedback from clients and to present
funders, partners, and community members with effective information about that process
Of course, there are also some challenges to develop human resource planning:
• A very real need to see results makes planning seem wasteful of time, diverting efforts from
doing. Impatience with planning is always a challenge.
• Public expectations may be unrealistic, looking for jobs as an immediate outcome.
• Careful assessment may turn up more human resource development needs than the projected
or existing resources and funding can handle, and this may require excruciating choise.

One of the HR planning this practice area houses is the executive succession planning process,
according to article above, senior management 360 feedbacks and coaching, as well as other senior
leadership development programs. I-O psychologists in this practice area are involved in assessing
the development needs of our senior leadership and measuring the success and value of such
programs. Elaine Sloan wrote an insightful article in TIP entitled, Identifying and Developing High
Potential Talent: A Succession Management Methodology that describes much of the work in this
area.

The aims of human resource planning in most organizations are to:

• Attract and retain the number of people required with the relevant skills and competences;
• Predict the problems of potential surpluses or deficits of people;
• Develop a well-trained and flexible workforce, thus contributing to the organization`s ability
to an uncertain and changing environment;
• Reduce dependence on external recruitment when key skills are in short supply by
formulating retention, as well as employee development, strategies;
• Improve the utilization of people by introducing more flexible systems of work.
What I expect for the relationships between managers should be like kind of organization with
member flexibility. Teams made up of flexible individuals have managers who can complete each
other`s task. This is an obvious plus to a team because it greatly improves its adaptability and makes
it less reliant on any single manager. So selecting managers who themselves value flexibility, then
cross-training them to be able to do each other`s job, should lead to higher team performance over
time. For example, consider a spring that has Q and q as, respectively, its force and deformation:

This advantage, however, is a moot point as personal computers are widely available and more
powerful. The main redeeming factor in learning this method nowadays is its educational value in

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imparting the concepts of equilibrium and compatibility in addition to its historical value. In
contrast, the procedure of the direct stiffness method is so mechanical that it risks being used
without much understanding of the structural behaviors. The upper arguments were valid up to the
late 1990s. However, recent advances in numerical computing have shown a comeback of the force
method, especially in the case of nonlinear systems.

New frameworks have been developed that allow "exact" formulations irrespectively of the type or
nature of the system nonlinearities. The main advantages of the flexibility method are that the result
error is independent of the discretization of the model and that it is indeed a very fast method. For
instance, the elastic-plastic solution of a continuous beam using the force method requires only 4
beam elements whereas a commercial "stiffness based" FEM code requires 500 elements in order to
give results with the same accuracy. To conclude, one can say that in the case where the solution of
the problem requires recursive evaluations of the force field like in the case of structural
optimization or system identification, the efficiency of the flexibility method is indisputable.

Next, as to the relationship between employees, I expect to member by composing of people who
prefer working as part of a group. Preference system arranged in organization, not every employee
is a team player. Given the option, many employees will select themselves out of team participation.
When people who would prefer to work alone are required to team up, the team`s morale and
individual member satisfaction are directly threatened. This suggests that, when selecting team
members, individual preferences should be considered along with abilities, personalities, and skills.
High-performing teams is likely to be formed

At last, the spectacle I expect to see in organization is Collaboration happening between managers
and employees, it is a recursive process where two or more people or organizations work together in
an intersection of common goals — for example, an intellectual endeavor that is creative in nature
—by sharing knowledge, learning and building consensus. Most collaboration requires leadership,
although the form of leadership can be social leadership within a decentralized and egalitarian
group. In particular, teams that work collaboratively can obtain greater resources, recognition and
reward when facing competition for finite resources. Collaboration is also present in opposing goals
exhibiting the notion of adversarial collaboration, though this is not a common case for using the
term. Collaboration in EPS should be found both inter- and intra-organization and ranges from the
simplicity of a partnership to the complexity of a multinational corporation. Collaboration between
team members is supposed to be better communication within the organization and throughout the
supply chains. It is a way of coordinating different ideas from numerous people to generate a wide
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variety of knowledge. The recent improvement in technology has provided the world with high
speed internet, wireless connection, and web-based collaboration tools like blogs, and wikis, and
has as such created a "mass collaboration." People from all over the world are efficiently able to
communicate and share ideas through the internet, or even conferences, without any geographical
barriers.

In the HR activity, recruitment is the process of attracting, screening, and selecting qualified people
for a job at an organization or firm. For some components of the recruitment process, mid- and
large-size organizations often retain professional recruiters or outsource some of the process to
recruitment agencies. What`s more, the recruitment industry has five main types of agencies:
employment agencies, recruitment websites and job search engines, headhunters for executive and
professional recruitment, niche agencies which specialize in a particular area of staffing and in-
house recruitment. The stages in recruitment include sourcing candidates by advertising or other
methods, and screening and selecting potential candidates using tests or interviews.

The structured process for recruitment McDonald employed have presented below:
1) Job analysis: For this stage, McDonald has made use of the Competency-Based People
Systems and Culture practice area which uses I-O psychologists for competency development
associated with selection, performance development, assessment, and succession planning. By
implementing competency-based people systems, McDonalds is building intellectual capital,
providing the tools needed to help each person deliver business results, and making the investment
required to support continuous learning and development as a business strategy. I-O psychologists
contribute through identifying development needs, targeting development curricula, as well as by
leading other more typical I-O projects such as developing staffing models, profiling job
competency requirements, and designing performance appraisal instruments. Following this path,
company can document the actual or intended requirement of the job to be performed.
2) Job Sourcing: For recruiting hourly-paid employees sourcing, McDonald's use several avenues.
Positions are generally advertised in the restaurant. The company's recruitment history shows this is
the best method of hiring quality staff. McDonald's also uses local job centres, career fairs and other
local facilities. It is vital to use effective hiring material with a clear message targeted at the right
audience.
For McDonald's future managers sourcing, it comes from two main sources. More than half of all
salaried management positions are taken up by hourly-paid employees who earn promotion. The
remainder are predominately graduates. McDonald's directs applicants towards applying on line at

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www.mcdonalds.co.uk. People who cannot access the web can call the Recruitment Hotline, or pick
up a pre-paid Business Reply Card from a McDonald's restaurant.
3) Job Selection: For recruiting hourly-paid employees, the manager will select the applicants to
be interviewed and will conduct the interviews. A well-run interview will identify an applicant's
potential to be a successful McDonald's employee. To find people who will be committed to excel
in delivering outstanding service, McDonald's also scripts an interview guide that helps the
company predict how an applicant's past behaviour is likely to influence future performance. It uses
a fact-based decision-making process. The questions look for actual events or situations rather than
allowing applicants to give a general or theoretical response. Interviewers look for behavioural
evidence in the applicant's life history that fits with the requirements of the job. The interviewer
rates candidates on their responses and offers jobs to those who earn the highest ratings.
For future managers, the selection process includes an initial online psychometric test. This test
produces an initial score. The applicant then attends a first stage interview and is offered "On Job
Experience". This is a 2-day assessment in a restaurant. Successful completion at OJE will lead to a
final interview, after which the manager decides whether or not to hire the applicant
4) Onboarding: Onboarding is a process of making chosen candidates being involved in
organization. In McDonald, it collects all new employees into the business through a Welcome
Meeting, which they must attend. The Welcome Meeting gives an overview of the Company,
including:
• job role
• food, hygiene and safety training
• policies and procedures
• administration
• benefits
• Training and development.
New employees will also meet their trainer, and tour the restaurant. The company operates a 3-week
probationary period, after which employees are rated on their performance and are either retained or
have their employment terminated.
So, here, I extract the 8 Steps to Walsall Council's recruitment process as a comparison with
McDonald:

1) Job analysis: A vacancy arises. Sometimes this is due to the creation of a new job, on other
occasions it may be because an existing member of staff has been promoted or is retiring. The
job description is updated and an employee specification is written. The job description lists the
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 duties of the job whilst the employee specification gives details of the experience, skills and
abilities needed to carry out the job.
2) Job sourcing: A vacancy advertisement is written and is circulated via Walsall Council's
weekly bulletin, Job Shop Weekly. Other media can be used including newspapers, internet
recruitment sites, specialist publications and the Employment Service. Application forms are
sent out along with copies of the job description and employee specification and must be
returned on or before the closing date that has been set. View our applying for jobs page for
further information.
3) Job selection: A shortlist is compiled of applicants who are going to be invited to attend for
interview. This is done by the recruitment panel that compares each application form with the
requirements of the employee specification. Feedback can be provided to those not shortlisted
and applicants have the right to complain if they feel they have been unfairly treated. Interviews
are held. The panel will use the same set of questions with each interviewee. The interview may
include a selection test. Feedback can be provided and unsuccessful applicants have the right to
complain if they feel they have been unfairly treated. View our interviews page for further
information.
4) Onboarding: References will be requested. The successful applicant for jobs working in certain
areas, including working with children or vulnerable adults, will be asked to apply for a criminal
disclosure check through the Criminal Records Bureau. Appoint the successful candidate and
arrange induction training.

Comparing these two different organizations, there are some significant differences in recruitment
process:
In job sourcing, McDonald makes use of the Competency-Based People Systems and Culture
practice while Walsall Council focuses on job description updating. In job sourcing, Position is
main idea for McDonald to source human resource while advertisement is main way Walsall
Council source the manpower. When it comes to job selection, they are using the same method to
select candidates which is interview, but depends on different media, McDonald conduct interview
on internet as well while Walsall council only use the traditional ask-answer model. In onboarding
stage, McDonald conduct welcome meeting which is compulsory for every new employee in order
to make them involved in organization smoothly then arranging training, Walsall council just go
through criminal disclosure check then arranging training, so in this aspect, McDonald has done a
more comprehensive recruitment system.

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 What`s more, I want to evaluate that the medias like TV advertising and apply on internet are very
creative methods to make this process more effective and make candidates saving more time to
prepare well in attending interview, the methods McDonald has employed like Welcome meeting,
I-O psychologists for competency development have contributed to perfection of recruitment
process system.

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 CONTENPORARY OB
Leadership style is the manner and approach of providing direction, implementing plans, and
motivating people. Kurt Lewin (1939) led a group of researchers to identify different styles of
leadership. This early study has been very influential and established three major leadership styles
(1). In my opinion, leadership style refers to how those people who got leadership guides, directs
and communicate commitment with others, technically, everyone have his own way to influence
people.

There are three leadership styles:

(1) Trait theory.

Leadership trait theory is the idea that people are born with certain character traits or qualities.
Since certain traits are associated with proficient leadership, it assumes that if you could identify
people with the correct traits, you will be able to identify leaders and people with leadership
potential.

Most of the time the traits are considered to be naturally part of a person’s personality from birth.
From this standpoint, leadership trait theory tends to assume that people are born as leaders or not
as leaders.

There is a lot of value in identifying the character traits associated with leadership. It is even more
valuable to identify the character traits that followers look for in a leader. These traits would be the
characteristics of an individual who is most likely to attract followers.

However, the idea that leadership traits are inborn and unchangeable appears to be incorrect. It is
true that many of our dispositions and tendencies are influenced by our personalities and the way
we are born. However, most people recognize that it is possible for someone to change their
character traits for the worse. Someone who is known for being honest can learn to be deceitful.
The whole idea of saying that someone was “corrupted” is based on the fact that people can learn
bad character traits.

If people can learn bad character traits and become different than the way they are naturally through
conditioning, it logically follows that they can learn good character traits as well. A person who is
prone to being dishonest can learn to be honest. A person who avoids risks can learn to take risks. It
may not be easy, but it can be done.
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For example, the five traits are:

• Honest
• Inspiring
• Forward-Looking
• Competent
• Intelligent

These are all traits that someone can learn to implement. It may not be easy, but with practice you
can become more inspiring, with practice you can become more honest, with practice you can
become more competent.

(2) Behavioral theory.

Behavioural theory assumes that leaders are made, not born. Behavioural theories of leadership do
not look for inborn traits or capabilities in an individual, but rather they look for what leaders
actually do. If the success of leaders can be defined in terms of the describable actions of a person,
then it should not be difficult for other people to act in the same way. This gives something concrete
to teach and learn, rather than relying on ephemeral notions of 'traits' and 'capabilities' which are
only vaguely defined. The fact that leadership can be learned rather than simply being inherent in a
person opens a floodgate to leadership development compared to Trait Theory, which relies on
psychometric assessment which divides people into those with leadership potential and those who
will never become leaders.

A behavioural theory is relatively easy to develop by simply assessing leadership success and the
actions of leaders. Using a large study sample, it is possible to correlate statistically significant
behaviours with success.

(3) Contingency theory

Contingency theory is a class of behavioral theory that claims that there is no best way to organize a
corporation, to lead a company, or to make decisions. Instead, the optimal course of action is
contingent upon the internal and external situation.

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They suggested that previous theories such as Weber's bureaucracy and Taylor's scientific
management had failed because they neglected that management style and organizational structure
were influenced by various aspects of the environment: the contingency factors. There could not be
"one best way" for leadership or organization.

Historically, contingency theory has sought to formulate broad generalizations about the formal
structures that are typically associated with or best fit the use of different technologies. The
perspective originated with the work of Joan Woodward, who argued that technologies directly
determine differences in such organizational attributes as span of control, centralization of
authority, and the formalization of rules and procedures.

There are the main ideas underlying contingency in organization:

• Organizations are open systems that need careful management to satisfy and balance
internal needs and to adapt to environmental circumstances

• There is no one best way of organizing. The appropriate form depends on the kind of task or
environment with which one is dealing

• Management must be concerned, above all else, with achieving alignments and good fits

• Different types or species of organizations are needed in different types of environments

According to motivation definition, motivation is the activation or energization of goal-oriented

behavior. Motivation is said to be intrinsic or extrinsic.

Intrinsic and extrinsic motivation

This form of motivation has been studied by social and educational psychologists since the early
1970s. Research has found that it is usually associated with high educational achievement and
enjoyment by students. Intrinsic motivation has been explained by Fritz Heider's attribution theory,
Bandura's work on self-efficacy and Ryan and Deci's cognitive evaluation theory. Students are
likely to be intrinsically motivated if they:

• attribute their educational results to internal factors that they can control
• believe they can be effective agents in reaching desired goals
• are interested in mastering a topic, rather than just rote-learning to achieve good grades.

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Extrinsic motivation

Extrinsic motivation comes from outside of the performer. Money is the most obvious example, but
coercion and threat of punishment are also common extrinsic motivations.

While competing, the crowd may cheer on the performer, which may motivate him or her to do
well. Trophies are also extrinsic incentives. Competition is in general extrinsic because it
encourages the performer to win and beat others, not to enjoy the intrinsic rewards of the activity.

Social psychological research has indicated that extrinsic rewards can lead to over justification and
a subsequent reduction in intrinsic motivation. In one study demonstrating this effect, children who
expected to be rewarded with a ribbon and a gold star for drawing pictures spent less time playing
with the drawing materials in subsequent observations than children who were assigned to an
unexpected reward condition and to children who received no extrinsic reward. (3)

I have identified all of the motivation theories and given discussion below:

The incentive theory of motivation

A reward, tangible or intangible, is presented after the occurrence of an action with the intent to
cause the behavior to occur again. This is done by associating positive meaning to the behavior.
Studies show that if the person receives the reward immediately, the effect would be greater, and
decreases as duration lengthens. Repetitive action-reward combination can cause the action to
become habit. Motivation comes from two sources: oneself, and other people. These two sources
are called intrinsic motivation and extrinsic motivation, respectively.

Need hierarchy theory

The theory can be summarized as follows:

• Human beings have wants and desires which influence their behavior. Only unsatisfied
needs influence behavior, satisfied needs do not.
• Since needs are many, they are arranged in order of importance, from the basic to the
complex.
• The person advances to the next level of needs only after the lower level need is at least
minimally satisfied.

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 • The further the progress up the hierarchy, the more individuality, humanness and
psychological health a person will show.

The needs, listed from basic (lowest-earliest) to most complexes (highest-latest) are as follows:

• Physiology
• Safety/Security/Shelter/Health
• Belongingness/Love/Friendship
• Self-esteem/Recognition/Achievement
• Self actualization

Herzberg’s two-factor theory

The factors that motivate people can change over their lifetime, but "respect for me as a person" is
one of the top motivating factors at any stage of life.

He distinguished between:

• Motivators like challenging work, recognition, responsibility which give positive

satisfaction, and
• Hygiene factors like status, job security, salary and fringe benefits that do not motivate if
present, but, if absent, result in demonization.

Self-determination theory

Self-determination theory focuses on the importance of intrinsic motivation in driving human

behavior. Like Maslow's hierarchical theory and others that built on it, SDT posits a natural
tendency toward growth and development. Unlike these other theories, however, SDT does not
include any sort of "autopilot" for achievement, but instead requires active encouragement from the
environment. The primary factors that encourage motivation and development are autonomy,
competence feedback, and relatedness.

Goal-setting theory

Goal-setting theory is based on the concept that individuals sometimes have a drive to reach a
clearly defined end state. Often, this end state is a reward in itself. A goal's efficiency is affected by
three features: proximity, difficulty and specificity.

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After identification and explanation of each motivation theory, I also made an example to see how
IBM Corporation makes use of two factors theory to motivate employees below:

A survey of 1000 adults working for IBM Corporation revealed that salary and bonuses are not the
key factors to job satisfaction. The people who conducted this survey found that these 1000
individuals working in different department in IBM Corporation placed greater value on benefits
that impact their overall quality of life. There will always be differences of opinion in whether
non-cash or cash incentives are the most desirable and even the most motivating. There are four
major types of compensation in IBM Corporation. These are pay, benefits, learning and
development opportunities and work environment. The former two are cash based incentives. In
this management of IBM, managers are willing to focus on mainly about rewards and recognition,
employee empowerment, and workplace amenities. These types of incentives are relational in
nature. They enhance the value of cash incentives.

Managers in IBM pursue employee empowerment which provides them with information about
how the organization is doing as a whole. IBM would instate a recognition program for employees
who continue to learn additional skills, which could be used on the job. If I was a manager I think
I would have a program very similar to this one. IBM managers believe that satisfying employees’
needs should be the role of compensation and satisfying wants is therefore the role of incentives.
This organization also provides opportunities to learn. This just goes to show that cash awards do
tend to be easily forgotten as previously mentioned. Another aspect of empowerment is making
sure that those who are closest to the work have all the tools and information they need.
Employees in IBM always mention that they have also made it a pleasant place to work and have
motivated me to do a better job than I might have otherwise done.

People exist according to Maslow in a hierarchy of needs, going from Physiological needs through
Safety, Social, Esteem to Self Actualization. As each need is satisfied the person moves up a level.
Thus people can be motivated by basic needs, but also by the 'spirit' and 'noble cause'. The best
example of this is warfare and the partial change of motivation from pay to glory, and a belief in
ideas. Indeed the use of propaganda this century has become important in motivating armies, in the
sense that your side has more moral worth than the others, though this of course can be true. Some
leaders would consider that it is necessary to use pain or threat of pain to motivate, but others
consider that this only motivates no one but the dullest and most idle of people. Promises of food,

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excitement, companionship, involvement and the appreciation of other benefits are better
motivators. Slight changes, the 'butterfly's wing', produces nearly negligible changes in
management motivation but can gradual produce slow positive change. The industrialist and
entrepreneur who is motivated by money does use this as part of the 'carrot and stick' motivation
technique. After the Second World War people were more sophisticated and needed new methods
and ideas in motivation.

Herzberg recognised that jobs had to be enriched with motivational factors. He sought to separate
man from the animal who's "needs to avoid pain and his need as a human to grow psychologically".
McGregor in Human Styles of Enterprise divided human management into two groups. His X
theory people need authoritarian management, they were people who hate work, are lazy, incapable
of taking responsibility. His Y theory people need management by participation, which are self
motivated and might be more like the majority of people. Their other wants are being satisfied.
They are capable of exercising self-direction and self-control if committed to an objective, the
achievement of which gives them an ego reward. McGregor believed that people would accept and
seek responsibility, have high potential and have this potential only partially utilised. Maslow
criticised this in that he thought that even Y people needed guidance. I found it interesting to apply
the X/Y theory to my non-teaching work place and found that we had an X boss and Y colleagues.

Thornily and Lees make several good points in their book, which also has an overview of the other
theorists. They believe that individuals must be treated in different ways, 'different strokes for
different folks'. Just because one person looks like another does not mean that they will behave in
the same way or be motivated in the same way. It is recognised that one volunteer is worth two
pressed men and the key to good leadership is having good manners, especially if they are of a
different sex, race, background, mental or physical capabilities.

Elizabeth Moss Kanter believed that empowerment was a key motivation factor and suggests that
management should be opened up to promotion from the ranks of the powerless, like women and
clerical workers. She wanted to see a decentralized authority, made up of autonomous work groups
which would produce motivation from the results.

Victor Vroom thought that people asked three questions to motivate themselves. 1. Can I do what I
am being asked to do? 2. Would I be rewarded for doing it? 3. Do I want the reward on offer?

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John Adair believed in action centred leadership, whereby the leader inspires others by their own
enthusiasm, commitment and the ability to communicate enthusiasm to people. There was a need to
establish teams and team-work, with the need to accomplish a common task, and the team being a
sum of the group’s individual needs. His views are developed in 'Effective Leadership'. Here he
identifies three different approaches to leadership, the interlocking concepts of Task, Group and the
Individual. He is critical of the ideas of inbred leadership qualities, though he feels that it would be
wrong to dismiss this altogether. The idea that there is no such thing as a born leader depends on the
situation. This situation’s approach, summed up, is where it is always the situation which
determines who emerges as the leader and what 'style of leadership' they have to adopt. It is too
easy in making value judgements, have hidden assumptions which can creep into the situation. He
accepts that some leaders require certain innate characteristics. People differ in intelligence,
scholarship, dependability in exercising responsibilities, activity and social participation and in
socio-economic status. The leader must have personality and character.

There are two understanding of group below:

1. Collection of individuals who have regular contact and frequent interaction, mutual influence,
common feeling of camaraderie, and who work together to achieve a common set of goals like cross
functional group in one company.

2. Subdivision of a set like each department in one organization.

Group behavior in sociology refers to the situations where people interact in large or small groups.
The field of group dynamics deals with small groups that may reach consensus and act in a
coordinated way. Groups of a large number of people in a given area may act simultaneously to
achieve a goal that differs from what individuals would do acting. A large group is likely to show
examples of group behavior when people gathered in a given place and time act in a similar way—
for example, joining a protest or march, participating in a fight or acting patriotically.

In order to enumerate and elaborate the nature of group and group behavior clearly, I have chosen
IBM as my example, in this company, the cross functional group have been formed very
frequently, so I will discuss the detail of the cross functional team.

A Cross-functional team is a group of people with different functional expertise working toward a
common goal. It may include people from finance, marketing, operations, and human resources

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departments. Typically, it includes employees from all levels of an organization. Members may
also come from outside an organization in particular, from suppliers, key customers, or consultants.

Cross-functional teams often function as self-directed teams responding to broad, but not specific
directives. Decision-making within a team may depend on consensus, but often is led by a
manager/coach/team leader.

The growth of self-directed cross-functional teams has influenced decision-making processes and
organizational structures. Although management theory likes to propound that every type of
organizational structure needs to make strategic, tactical, and operational decisions, new procedures
have started to emerge that work best with teams.

McDonald's believes that the success of the restaurants and the company is achieved through the
people it employs. The company aims to recruit the best people, to retain them by offering ongoing
training relevant to their position and to promote them when they are ready. Its recruitment policies,
procedures and practices reflect the company's determination to fulfil its aim.

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 REFERENCES

1) Greenpeace International (April 2006). "We're trashin'it, How McDonald's is eating up the
Amazon" (PDF). http://www.greenpeace.org.uk/media/reports/were-trashin-it. Retrieved
2008-12-15.

2) Sweney, Mark (2006-04-20). "Not bad for a McJob?". London: The Guardian.
http://www.guardian.co.uk/media/organgrinder/2006/apr/20/post3. Retrieved 2009-03-30.

3) Ian Ashbridge (2007-07-03). "McDonald's milk goes organic - 03/07/2007 -

FarmersWeekly". Fwi.co.uk. http://www.fwi.co.uk/Articles/2007/07/03/104864/mcdonalds-
milk-goes-organic.html. Retrieved 2010-08-27.

4) "ibtimes.com, McDonald's Holds down Dollar Meal, Making Menu Healthier".

http://www.ibtimes.com/articles/20080522/mcdonald-039-holds-down-dollar-meal-making-
menu-healthier.htm

5) "www.gmanews, McDonald's says all US French fries cooked in zero-trans-fat oil".

http://www.gmanews.tv/story/96850/McDonalds-says-all-US-french-fries-cooked-in-zero-
trans-fat-oil.

6) "McDonald's hails success of waste-to-energy trial" businessgreen.com. April 14, 2008.

Retrieved April 22, 2008.

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7) "Local woman creates environmental-friendly Web site" herald-dispatch.com. April 19,
2008. Retrieved April 22, 2008.

8) "'Sustainable' bio-plastic can damage the environment" guardian.co.uk. April 26, 2008.
Accessed May 6, 2008.

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