Human Resource Management in McDonald's

We select McDonald's to analyze its training, education and beneIit through overview its history
and job structure Furthermore, we compare McDonald's in US with McDonald's in China on
those oI standards mentioned above. Finally, we give some constructive and rationalizative
suggestions.


The Concept of HRM
What exactly is 'Human Resource Management'? Many people Iind HRM to be a vague and
elusive concept--hot least because it seems to have a variety oI meanings. This conIusion reIlects
the diIIerent interpretations Iound in articles and books abort Human Resource Management, A
philosophy oI people management based on the belieI that human resources are uniquely
important to sustained business success. An organization gains competitive. advantage by using
its people eIIectively, drawing on their expertise and Ingenuity to meet clearly deIined objective
.HRM is aimed at recruiting capable, Ilexible and committed people, managing and rewarding
their perIormance and developing key competencies.
The HRM model emphasizes:
The need to search Ior new ways oI working.
The central role oI managers in promoting change.
The treatment oI workers as individuals rather than pan oI a
collective work Iorce..
The encouragement oI workers to consider management. as "priers" rather than as opponents --
'us and us', rather than 'us and them'.

Why is HRM Increasingly Important?
Form a Business Process Parspentive Caker and Bititci(2001) state that:
"One many summarize that the 80's were all about automation .The 90's have been about people,
this is evident in the development oI Tom concepts throughout the 90's Iocusing on delegation,
involvement ownership cross Iunctional teamwork, selI managed works teams and so
on"' ThereIore, HRM (People Management) is a critical nigh advancing the business results.
'This report Primarily Iocus on Human Resource Management. It shows us what the usage oI
human resource management and how does it work in the company.
Now we know the importance oI HRM. According to the teacher's requirements and aIter a
careIul research., we just take McDonald's Ior example to write a report about HRM at
McDonald's. The inIormation and the material mainly came Irom the internet, a Iew oI them
came Irom our textbook..
McDonald's: A case study of the face food industry(US)

Let us come to the Iirst part :
Overview
1. The Company
McDonald's is the largest Iood service company in the world. In 1993, annual sales stood at 23
billion dollars. It is also one oI biggest employers in the United States , with over halI a million
workers .The company has roughly 10,000 locations Which include the standard sit-in
restaurants, drive through windows, and satellite sites. McDonald's dominance in the Iast-Iood
industry is not likely to disappear anytime soon. Tile Company is expanding continuously, as at
December 2000, McDonald's and its Iranchises operated over 28,700 restaurants worldwide in
120 countries and territories, serving Iood and drab to over 45 million people daily:
Only IiIteen to twenty per cent oI the restaurants are actually company-owned. The rest are
Iranchises, run by 2,659 independent owners who pay a Iee oI between $400,000 and $700,000
Ior a Iranchise. McDonald's licensing department handles the Iee structure on a case by case
basis, and there are a wide variety oI license Iees determined by property and equipment costs. A
skilled Iranchisee can earn a sex-Iigure income Irom a single restaurant; most own 2 or more
restaurants.


2. The Job structure

an1ployees oI McDollald's Iall into three groups restaurant workers, corporate staII, and
Iranchise owners. The Iast group is the biggest a local Mcboald's restaurant usually employs
between 50 and 65 people. Company staII members work either at the corporate headquarters or
at one oI 40 regional oIIices.
In the restaurants crew members constitute the entry-level position and are by Iar the most
numerous. A large majority are part-time workers, roughly three-quarters. Their wages are low.
Swing Managers constitute the Iirst true managerial position in the hierarchy, although their
hourly wages are only slightly higher than crew member wages. Assistant Managers and higher
are salaried. There is one Restaurant Manager per McDonald's restaurant.
According to company literature, approximately 12 oI all teens currently employed in the U.S.
work Ior McDonald's. Turnover at the crew-level employees are teenagers. The remainder
includes seniors, working mothers, and "transitional" workers in the 20-25 age range.
The overview above just shows us the history and the structure oI McDonald's.
Now come to the second pat:
The McDonald brothers' Iirst restaurant, Iounded in 1937. From sitting on an outdoor stool or in
their cherished new autos to in indoor restaurant and Irom the hot dog to the Big Mao and Happy
Meals, it's tremendous diIIerences. Along the way, it built one oI the world's best-known
corporate icons and its most ubiquitous store. Why McDonald's becomes increasingly popular
and successIul? The philosophy was neatly summarized: What ever people ate, McDonald's
would be the ones to sell it. Furthermore, its Iamous even due to its quality Iood and the ways oI
management.
Here we just Iocus on the ways oI management at McDonald's, such as training, education and
beneIit.

Training

Employee training at McDonald's is highly structured. Ends-level workers are Iirst taken through
the basic Crew Training System. The program consists oI on-the job- training and is largely
vocational. Each stage oI advancement beyond the crew level then entails a new training
program, with the skills becoming more complex and generalized.
Training begins immediately with a one-hour orientation on the company. Each restaurant has its
own video player and training room. Step--by --step manuals and video tapes cover every detail
oI the operation, everything Irom how to make a Big Mao to a shake. Each restaurant has 25
stations Irom the grill area to the Iront counter, Trainers use a series oI checklists as new crew
members move through the restaurant. A level oI competency is demonstrated and the activity is
checked oII on the SOC--Station Observation Checklist. There is a Iollow-up SOC to get
certiIied on the station.
One a crew trainers has been promoted to swing manager and perIormed successIully, he or she
is eligible Ior the Management Development Program. It provides technical and Iunctional
management skills Ior employees at the swing manager level and above. The Iirst step is the
Basic Operations Course, which takes several months to complete. It is a course Which covers
Iundamental restaurant opinions. The nab in the sequence is the Basic Management Course,
Which teaches leaderships, time planning, and crew recognition. In the intermediate Operations
Course, students are trained on crew recruitment and retention, store leadership and decision-
making. The Iinal course in this sequence is the Regional Equipment Course.
Once a Iront-line crew member has progressed to the position oI assistant managed, he or she is
eligible to attend Hamburger University , the Company's world wide training center Ior
management personnel. Approximately 2,500 managers and potential Iranchisees take part in the
Advanced Operations Course, or AOC. The Management training curriculum at Hamburger
University has been altered in scope: almost 80 oI the advanced operations Course is now
devoted to enhancing communication, interpersonal, and human relations skills. Teaching
methods have shiIted Irom lecture Iormat to include role playing with video Ieedback and small
group exercises. All managers are required to receive training Irom hamburger University at least
once every 5 years. New emphases include goal setting, diversity management, team building,
and employee development.
The company has plans Ior a certiIication program which will govern how employees progress
Irom the crew to the level oI restaurant managers. Plans are also in place Ior a Workplace Skills
CertiIicate. It would be given to crew members who have mastered a set oI essential workplace
skills, and thus provide a "walkable credential" to enable them to move onto another position
within the consumer service industry. McDonald's is a quick service restaurant business
committed to 100 satisIaction. Macdonald's independent Franchisees and Company-owned
restaurants serve over 22 million customers every day around the world. Each and every one oI
these customers deserved great services Irom the moment they approach the counter or drive-
thru window until they leave the restaurants. We depend on the employees in the restaurant,
whether employed by an independent Iranchises or by McDonald's Corporation, to provide a Iast
Iriendly and courteous experience to all guests so they will visit us again and again. That's why
McDonald's Independent Franchisees and McDonald's Corporation look Ior
individuals who like to have Iun While delivering Iast accurate and Iriendly service. II you are
interested in becoming a part oI a McDonald's Team, here are some oI the duties that could be
required oI you.:
1. On Time, Neat and Clean: Our crewmembers are expected to report work on time, neat and
clean.
2. Wash Your Hands: the most important thing crewmembers so to help make sure our customers
receive saIe Iood is to wash their hands oIten.
3. Skills and Training: Training will provide you with the skills you will need to perIorm your
job.
4. Standards: Crewmembers Iollow standard operational procedures so customers always receive
exceptional quality & service.
5. Teamwork: Our crewmembers rely on teamwork and high energy to get the job done.
6. Clean' Spotless... Tidy... sparking. Our customers expect every McDonald's will be clean.
7. Welcomed Guest: Our crewmembers make each customer Ieel like a welcomed guest.
8. Service: We depend on our crewmembers to deliver Iast, accurate and Iriendly service with a
smile.

ducation

McDonald's is committed to the education oI our youth. We all take this leadership role very
seriously and work in partnership with parents and educators to ensure that our school-age
employees see education and schoolwork as their top priorities. McDonald's Corporation and
McDonala's Owner/Operators are similarly committed to ensuring that the McDonald's job
experience complements and supports employees' educational goals. Our eIIorts are deIined by
the Iollowing principles: education always comes Iirst, employment supports education,
schoolwork balance and opportunity/careers at McDonald's.

Benefits

Competitive Wages
MAC Card
Haircut Discounts
Wages increases
McDonald's Training Programs
LiIe insurance
Education Support
McDiect Shares
UniIorms
Flexible Hours
Paid Vacation
Bonus Scheme
Stock Purchase Plan

Comparison between US McDonald's and China McDonald's

Everyone has to eat to live. However, more and more eating Iast has become a away oI liIe.
People in the United States have eaten Iast Iood Ior many years. This habit is moving to other
countries as well, oI course, including China . When McDonald's enter China market, Ior the Iear
oI lagging behind and to satisIy with the curiosity, everyone goes to have a try what the taste oI
Big Mao is. AIter tasting it, you will know why it is so popular. Because they have critical
quality control inspection, guaranteeing sanitation and quality. And also their success mainly
depends on their advanced management not the Iood itselI. Most people are satisIied with the
quality oI the Iood Which McDonald's Produces. However, the management oI China
McDonald's is slightly inIerior by comparison. The McDonald's management in China is quite so
young-just Iew years. Take training Ior example, entry-level workers are Iirst taken through the
basic Crew Training System. Each stage oI advancement beyond the crew level then entails a
new training program, with the skills becoming more complex and generalized. Each restaurant
has its own video player and training room. Step-by-step manuals and video tapes cover every
detail oI the operation, everything Irom how to make a Big Mao to a shake. Trainers use a series
oI checklists as new crewmembers move through the restaurant. A level oI competency is
demonstrated and the activity is checked oII on the SOC. Furthermore, iI you are promoted to be
a manager, you have chance to go to hamburger University . However, in China , there is not any
Hamburger University Ior crewmembers or managers to enter. Here the crewmembers just taught
easily on how to do the procedure, not a complete training program. That means it is not a
proIessional program. China McDonald's are just aware oI the quantity not the quality. Another
concern is that at China McDonald's, a job is just a job, perhaps halI oI them think that working
in McDonald's just Ior the money, just Iew oI them think that working at McDonald's restaurant
provided them with a wealth oI experience and skills. But I think that the beneIit is important as
same as training. Because good beneIits can keep the employee working Ior McDonald's and
making progress. There are some beneIits the china McDonald's employees don't have, such as
educational assistance. China McDonald's don't Provide any program or scholarship Ior
employee; proIit sharing is strange Ior China McDonald's employees, I think the Chinese
employees just only have their own initial salad and liIe insurance and perhaps paid vacation;
perhaps employees don't know much about the stock options Ior eligible employees and stock
purchase plan.

Suggestions

That's the problem Ior China McDonald's. However, these big diIIerences owing to our diIIerent
cultures, customs and complicated background. The orient people have diIIerent thinking Irom
the westerners. By saying that the emphasis I mean not the diIIerent thinking itselI but their
advanced management, Ior having probed the key to success, We could Iind Out that both soIt
and hard environment account Ior their achievement. And that deserves our pondering and
reIerence in managing Iast Iood market our own. And how we improve this incomplete system.
For the aspect oI training, we can introduce some video tapes and programs, learn Irom the
Unit6d States McDonald's how they train employees, how they educate their employees.
Mealtime china McDonald's should encourage employees receive more courses which are
suitable Ior them to study. As the beneIits, McDonald's should increase the employees' wages
and let the employees enjoy more wealth oI beneIits, including bonus, education supports, proIit
sharing, stock purchasing and so on. These actions will encourage the motivation Irom
employees and increase the eIIiciency oI completely utilizing the human resource so that
improve the outstanding achievement