Case Study MCD

Training and Development
SHRM
Case Study
McDonald’s
Mc Donald’s
• McDonald’s is a leading global foodservice retailer with more
than 30,000 local restaurants serving nearly 50 million people
in more than 119 countries each day.
• It serves the world some of its favorite food-

French Fries, Big Mac, Chicken McNuggets and Egg
McMuffin.
• First McDonald’s restaurant was opened by Ray Kroc at
Illinois,USA in 1955. It is no longer functional and the building
is now McDonald’s museum.
• McDonald’s went public in 1965 and in 1985, it was added on
30-company Dow Jones Industrial Average.
• Today it is one of the most well known, valuable and powerful
brands of the world.
• Agenda- 100% total customer satisfaction.
• Four golden words:
QUALITY
SERVICE
CLEANLINESS
VALUE
People
• Typical McDonalds’ restaurant employees about 60 people.
• Most employees are paid by the hour, and referred to as ‘Crew

Members’.
• Other hourly-paid employees are training squad members,

dinning area hosts, party entertainers, administrative assistants,
security coordinators, night closers, floor managers and shift
running floor managers.
• McDonald’s is representative of the wider growth in temporary

and part time sector. 55% of the hourly paid staff are students.
• The remaining salaried employees are managers working in
either corporate or regional departments. Responsibility is to
manage operations, crew and business performance.
• 20 of 50 top managers started in McDonald’s

restaurant, including the CEO, Jim Skinner.
• Voted as the Best place to work for

minorities by Forbes in 2005.
Commitment to Training
• From the very early days, Ray Kroc (founder) wad prepared to invest a great
deal of money in training staff.
• McDonald’s has a strong tradition of training

and it invests more than $ 1billion annually in
training.
• McDonald’s Hamburger University was first

opened in a restaurant in Chicago in the year 1961. It initially aimed at
developing a learning process through which Kroc could assert control over his
standards of QSCV.
• The graduates were awarded a Bachelor of Hamburgerology degree with minor

in french fries. The University has more than 275,000 graduates worldwide.
• Initially Ray Kroc avoided employees with direct experience or
formal training in food preparation or restaurant
business. These people wanted to do the
business their own way.
• Instead, he saw a different mix of dedication,

entrepreneurship and wider skills in service and
quality as the right type of Skills Mix.
Orientation and Induction
• The first stage of learning is at the Welcome Meetings through
which all the new employees are inducted into the business
processes. These set out the company’s standards and
expectations.
• Welcome Meetings are followed by a Structured Development

Programme that provides training in all areas of business.
Trainers learn the necessary operational skills for running each of
the 11workstations in each restaurant.
• The majority of the training is floor-based or on-the-job
training as people learn more while
practicing.
• They also attend classroom-based

training sessions where they
complete workbooks for quality,
service and cleanliness.
• The employees are rated after three

months on their performance and they
are either retained or have their employment terminated.
Training and Management Development
• McDonald's places great emphasis on employee training to ensure the
highest standards of service across all outlets globally regardless of
the restaurant or the continent.
• The tightly controlled process is called the ‘one best way’. It covers
all areas of business, from meeting and greeting, to food preparation,
to cleaning the floor. In order to relieve monotony, crew members are
rotated through a number of different roles.
• Training is delivered and assessed through a variety of methods such

as ‘shoulder to shoulder’, ‘classroom programs’ and ‘e-learning
modules’. All the development plans at McDonald's stem from the
same essential principles that Kroc introduced in the 1950s, i.e.,
quality, service, and cleanliness.
• Courses for management development include:
1. Employee relations training
2. Time management
3. Staff retention and discipline
4. Personal leadership and effective coaching
5. Employee communications
6. Learning to manage shifts
7. Community image
8. Managing staff development
9. Optimizing restaurant food cost
10. Accounting and Financial procedures
• The operations and training manual weighs just over 4kg and is
more than 800 pages long. General Managers at McDonald’s are
expected to complete further programmes, such as Diploma in
Management from Nottingham Trent University (in UK outlets).
• The training approach at McDonald's is based on developing
competencies using a Personal Development
Plan (PDP). Training is monitored by the use
of ‘Observation Checklists’ (OCLs) for the
station they are working at.
• The management development curriculum is

aimed at persons aged 21 or over, either
graduates or individuals with some previous management experience.
The management development curriculum is divided into four key
programmes:
1. Shift Management
2. Systems Management
3. Restaurant Leadership
4. Business Leadership
McDonald’s Diversity Initiatives
• McDonald’s is the world’s community restaurant. Diversity at
McDonald's is seen as understanding, recognizing, and valuing
the differences that make each person unique.
• Some of the diversity initiatives at McDonald’s have resulted in

it having the largest number of minority and female franchisees
in the quick service industry, with more than 40.7% of all
McDonald’s US owner/operators being women and minorities.
• The company has employee networks such as Women's

Leadership Network, Asian Employee Network, McDonald's
African American Council, etc. These networks help the
company maintain a better connection with the diverse customer
base.
• McDonald's is committed to diversity education and has
developed a framework to provide it throughout the organization
through formal presentations, workshops, and seminars.
• Seminars and workshops like Winning with

Diversity and Inclusion, GenderSpeak,
Asian Career Development, Black Career
Development, and Women: Enhancing
Personal and Professional Effectiveness,
serve as the cornerstone for bringing diversity
to life in the organization.
• Diversity education is an ongoing process,

creating awareness and building skills for managing an inclusive
and diverse workforce.
Evaluation of Training
• Training effectiveness is measured by unit managers based
on OCLs through a computerized log. The results are used
to track restaurant performance resulting in a ‘training grade’.
• To measure quality, service and cleanliness, McDonald’s uses mystery

shoppers who pay a monthly visit to each site. The results indicate that
restaurants in above average training category have higher scores,
especially on ‘service’. This means that when staff are well trained and
motivated, customer service improves.
• It has been observed that the restaurant where the manager takes a hands-
on approach to training, the performance is good.
• Effective and regular training also brings benefits like employee
satisfaction which in turn enhances customer ratings, and lower staff
turnover.
Questions
Ques1. Do you think McDonald’s Training initiatives are aligned
with business strategy? Explain the reasons for it. Why is it
important to establish business strategy-training linkage?
Questions
Ques2. Discuss how McDonald’s strategic commitment to
training has contributed to its position as a ‘leading global
foodservice retailer’.
Questions
Ques3. Examine Ray Kroc’s training philosophy. How has

McDonald’s gained from this philosophy?
Questions
Ques4. How relevant is training and development for a company
like McDonald’s which is seen as ‘deskilled’?
Ques5. Describe the orientation training at McDonald’s. What
purposes does it serve?
Ques6. Discuss the training and management development
process at McDonald’s with respect to its design, purpose,
methods and content. What organizational goals does it help
McDonald’s achieve? Evaluate McDonald’s T&D process
based on your understanding of the process of training.
Ques7. What purposes are served by diversity training for
McDonald’s take for diversity inclusion in its workforce and
with what benefits?
Ques8. What criteria are used to evaluate training
effectiveness at McDonald’s?
THANK YOU ALL
Presented by:
Ashu
Hemant
Neha Goomer
Rashmi Pawar
Shravan Gupta
Swarnav Dutta

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Training and Development

• It serves the world some of its favorite food-

• Most employees are paid by the hour, and referred to as ‘Crew

• Other hourly-paid employees are training squad members,

• McDonald’s is representative of the wider growth in temporary

• 20 of 50 top managers started in McDonald’s

• Voted as the Best place to work for

• McDonald’s has a strong tradition of training

• McDonald’s Hamburger University was first

• The graduates were awarded a Bachelor of Hamburgerology degree with minor

• Instead, he saw a different mix of dedication,

• Welcome Meetings are followed by a Structured Development

• They also attend classroom-based

• The employees are rated after three

• Training is delivered and assessed through a variety of methods such

• The management development curriculum is

• Some of the diversity initiatives at McDonald’s have resulted in

• The company has employee networks such as Women's

• Seminars and workshops like Winning with

• Diversity education is an ongoing process,

• To measure quality, service and cleanliness, McDonald’s uses mystery

Ques3. Examine Ray Kroc’s training philosophy. How has

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