HR Presentation

McDonald's
&
HR
Manageme
nt
System
Slides by Farhan Abid 1
Topic Covered
 Company Overview
 Organizational Structure
 HR Management System
 Human Resource Planning

Slides by Farhan Abid 2

Topic Covered (Cont’d)
 Recruitment &
Retention
 Training &

Development
 Performance Appraisal

Slides by Farhan Abid 3

Company Overview
McDonalds is the largest and best-known global
foodservice retailer with more than 30,000
restaurants, serving 47 million customers each day
in 118 countries. We plan to expand our leadership
position through great tasting food, superior service,
everyday value & convenience. Fortune Magazine
released its 2007 list of America's Most Admired.
Companies ranking McDonald's Corporation as one
of the top companies in the Food Services Industry
category.

Slides by Farhan Abid 4

Company Overview
((Cont’d

In addition, our key attributes of reputation

rankings on Social Responsibility, Financial
Soundness, People Management, Quality of
Management and Quality of Products/Services
all rank in the top 10. McDonald's is one of
the most valuable brands in the world. Join
our Corporate Analysis and Support team and
find out firsthand why Fortune Magazine calls

Slides by Farhan Abid 5

Drive-thru

McDonald’s opened
its first drive-thru
window in Sierra
Vista in 1975,
Arizona to
accommodate a
more mobile
society.

Slides by Farhan Abid 6

The Happy Meal

Sine 1979 the Happy

Meal has been
making kids visits
that much more
special.  Clubs the
world over collect
Happy Meals toys
and boxes.

Slides by Farhan Abid 7

Today – 21st century
McDonald’s has sold well over 100 billion
hamburgers, prepared more than 6.8 million
pounds of French fries every day, and more
than 50,000 students have graduated from
“Hamburger University”.
Approximately 85% of McDonald’s restaurant
business world-wide are owned and operated
by franchisees who are independent and full
time operators.  The corporations' revenues
come from the rent, royalties and fees paid by
the franchisees, as well as sales in company-
operated restaurants. 

Slides by Farhan Abid 8

 (Today – 21st century (Cont’d
McDonald's revenues grew 27%
over the three years ending in
2007 to $22.8 billion, and 9%
growth in operating income to
$3.9 billion.  McDonald’s was
naming Entrepreneur’s
number-one franchise for 1997.

Slides by Farhan Abid 9

Organizational Structure
The organizational structure of an organization largely
dictates the effectiveness of the firm in its
management systems. It gives an impetus for work
coordination efficiency.  Herein, the organizational
actors and processes are embedded in a larger
organizational system with unique structural
descriptions. Industries like McDonald have been
able to consider specific organizational structure.

Slides by Farhan Abid 10

Organizational Structure (Cont’d)
The organizational structure of McDonald is very
common among fast food chains. First there
are board of directors or known as the top
management which include the CEO and the
owners followed by different departments
such as human resource, audit and accounting
department, operations department and
information technology department. The
company has also operations manager which
handles the daily tasks of the service crew.

Slides by Farhan Abid 11

Organizational Structure (Cont’d)
In McDonald, there appeared to be a
product controller and crew leader who
were non-managerial employees and
there are managers who are always
present. The managers are responsible for
controlling every aspect of the whole
operations and service process. Since
McDonald is a fast food chain, there is a
hierarchy of commands. Further there are
also regional manger and store manager
all the way to the CEO of the company
Slides by Farhan Abid 12
 Organizational Structure (Cont’d)

The distinction of
the management
staff and the
service crews was
very apparent
and clear by
looking at their
uniform.

Slides by Farhan Abid 13

HR Management System
As a leader in global food chain industry,
McDonald know the Importance of
replication and multiplication; it is
required to replant standard operation,
efficient management and strategic
planning into every restaurant all over
the world.

Slides by Farhan Abid 14

HR Management System (Cont’d)
From 2004 till now, McDonald has finished implementation
of K/3 HR Personnel Management, Payroll Management
and Report module, besides that, it also finished
stimulation run of Performance Management, Employee
Capacity Quality module. In McDonald, all the human
resource operation can be done through
website, headquarters set organization structure and
authorize related staff to enable staff run HR system in
the right business group.

Slides by Farhan Abid 15

HR Management System (Cont’d)
Headquarters can easily manage human resource
and query analysis report through K/3 HR system.
Base on K/3 HR system, McDonald has built HR
management platform and finished
planning for organization structure, managed
personnel files, input dynamic human resource
data and managed payroll.

Slides by Farhan Abid 16

HR Management System (Cont’d)
On one side, decision-maker of McDonald
can have a big picture of human
resource of McDonald and make proper
decision, on the other side; employee
can gain opportunity of training and
promotion in employee development
system.

Slides by Farhan Abid 17

K/3 HR System

Slides by Farhan Abid 18

Human Resource Planning
With the intensive competition in the market place,
companies like McDonald are trying to sustain
their market leadership by initiating strategies
that adhere to the needs of the business
environment, the company and the employees as
well. This report, aims on providing intensive plan
for McDonald in line with implementing a new and
strategic Human resource management that cater
to the needs of their employees which in return
provide quality services on their target market.

Slides by Farhan Abid 19

Human Resource Planning (Cont’d)
The aim of the human resource management is to
enhance the abilities and skills of employees through
rigorous training and development and to prove
recruiting and retention approach to have the best
employees. In addition, this paper also discussed the
reward and compensation programmed to be considered
by McDonalds as well as the performance appraisal and
management review, to know if the objectives of the
company for change have been achieved

Slides by Farhan Abid 20

 Human Resource Planning (Cont’d)
The paper concluded that in
order for McDonald to
achieve their objective of
becoming the market leader,
they must consider effective
human resource
management approach at
the entire level of the
company’s organizational
structure.

Slides by Farhan Abid 21

Recruitment & Retention
One of the accountabilities of the human resource
management department is the recruitment and the
retention of highly qualified and skilled employees.
This is considered as the primary activity in hiring
competent people that would become an asset on
the company. In recruiting the right employees,
companies like McDonald should consider several
factors; these include positive work behaviors, and
technical skills

Slides by Farhan Abid 22

Recruitment & Retention (Cont’d)
Staffing or recruiting today has been taken a lot more
serious by most management. Gaining and acquiring
competent staffs at all levels of the company are more
than a matter of training. It can be rooted from
effective recruitment and retention programs. The
recruitment and the retention programmed for
McDonald may include how they filter the job
applicants, the recruitment channels to be used and
the type of information conveys by the industry to the
applicants during the process.

Slides by Farhan Abid 23

Recruitment & Retention (Cont’d)

Slides by Farhan Abid 24

Training & Development
In enhancing the Human resource management
of McDonald, the management should also
consider the context of employee training and
development. The new and strategic human
resource management approach of McDonald
should highlight the value of providing regular
training and development programs for the
improvement of the technical, technological
skills and knowledge of the employees and
the crew members.

Slides by Farhan Abid 25

Training & Development (Cont’d)
The training and development initiative
should be conducted in the purpose of
achieving growth for the employees and
the corporate objectives. Accordingly,
training and development refers to the
acquisition of skills and knowledge that
specifically adhere to the technical and
intellectual requirements of the
company, in this case, McDonald.

Slides by Farhan Abid 26

Training & Development (Cont’d)
Trainings are characterized with learning
through practical as well as experiential
developments within the bounds of the
working environment. At present, training
and development programs for
professional development offered by
business organizations to their employees
encompass the aspects of morals and
principles, work attitude and behavior,
field and technical know-how, and
leadership potential.
Slides by Farhan Abid 27
Training & Development (Cont’d)
All these should be taken into
account by McDonalds
based on the requirements
of the company in order to
foster productive aptitude
among qualified workforce
in the fast food chain.

Slides by Farhan Abid 28

 Performance Appraisal
            McDonald’s management should recognize the hard
work and effort of their employee by means of giving those
rewards and other benefits. However, the company must
also consider having a well-established performance
systems or indicators which would evaluate and measure
the performance of their employees in terms of quality.
After considering and implementing the new Human
resource management for McDonald, it is expected that
the working behavior of their employees will be enhanced
within 3 to 6 months of employees.

Slides by Farhan Abid 29

Performance Appraisal (Cont’d)
After the implementation of the said changes in the
Human resource management of McDonald, the
management should be able to regularly appraise and
evaluate the performance of the employees to
determine any performance gap which could be
detrimental to the operations of the company.  Upon
the completion of this evaluation, performance gaps
should be noted to come up with systems which will
meet the goals and objectives of the company.
Performance appraisals aim on achieving two basic
objectives.

Slides by Farhan Abid 30

 Performance Appraisal (Cont’d)
The evaluation purpose aims on
letting the employees know where
they stand relative to the
performance of their co-workers
and the objective of the standards
of the company. On the other hand,
the development purpose aims on
assessing the training knowledge
needs of the service crews for both
the personal and professional
development

Slides by Farhan Abid 31