Chapter 1

Introduction

McDonald’s 1

McDonald’s Pakistan I’m lovin’it

1.1 Vision:

To be the world's best quick service restaurant experience. Being the best means

providing outstanding quality, service, cleanliness and value, so that their food

makes every customer in every restaurant smile

1.2 Mission:

McDonald's mission is to be their customers' favorite place and way to eat with

inspired people who delight each customer with unmatched quality, service,

cleanliness and value every time.

1.3 About McDonald’s:

1.3.1 Restaurant:

Aiming to be the world's best quick service restaurant experience, McDonald's

started its operations in Pakistan in 1998 and is a leading fast food service retailer

for its valued customers. With a strong belief in the phrase when it's green it's

growing, McDonald's Pakistan is growing with the focus to provide friendly and

quick service restaurant experience to their customers. Currently McDonald's

Pakistan is operating in various cities of Pakistan I-e Lahore, Faisalabad, Karachi,

Hyderabad, and Islamabad & Rawalpindi with the plans to cover the customer

base in various other cities of the country.

McDonald's Pakistan is a part of the Lakson Group of Companies, with a regional

office in Lahore and the main Head Office in Karachi. They are operating with a

network of restaurants to reach our customers for providing friendly services in all

different regions of the country.

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McDonald's a Global Phenomenon:

Formed in 1954, McDonald's brand is the leading global foodservice retailer with

more than 30,000 local restaurants serving nearly 50 million people in more than

120 countries each day. Its rich history began with the founder Ray Kroc's vision

and his commitment, transformed in their talented executives, and will keep the

shine on McDonald's arches for years to come.

1.3.2 Core Values of McDonald’s:

Integrity and Honesty

Open, Respectful and Supportive

Prepared to take challenges and see them through

Deep regards for Customers, Business partners and employees

Quality in Product

1.3.3 Departments of the Organization:

Finance Department

Human Resource Management

Marketing Department

Operation Department

IT Department

Quality:

McDonald’s is very strict about the quality of services they provide. They don’t

compromise anything over quality. Quality is considered to be one of their

foremost objectives. They want 100 % quality of service. Quality is checked on

for:

High standard of food, services provided to the customers.

Communication skills i.e. English speaking skills

Appearance and grooming

Ability to communicate with guests and handle versatile situations.

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1.4 Hierarchy of McDonald’s:

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Head of Department

Senior Manager

Manager Manager ManagerManager

Senior Manager

Assistant Manager

Executive

Assistant Manager

Executive

Coordinator Coordinator

Chapter 2

HR Planning & Methods of Job

Analysis & Evaluation

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HR Department of McDonald’s

2.1 HR Introduction:

At McDonald's Pakistan, their people are their most important asset. They provide

the best employment experience for their employees in order for McDonald's

Pakistan to achieve their goal of providing their valued customers with the world's

best quick-service restaurant experience. They strive to recruit the best, hire the

best, and provide the best place to work

The commitment to their employees is shaped on the simple fact "We value you,

your growth and your contributions" and this is they strive to achieve through

their actions every day.

2.2 HR Planning:

HR planning’s purpose is to determine what HRM requirements exist for current

& future supplies & demands of workers. To realize the McDonald's service

vision, the organization believes in strengthening their team and ensures to deliver

the right skills and knowledge to the right person for getting the right job done.

The strength, for making the strong team players to shine under the Golden

Arches lies in the People Practice and Development Program.

HR practices:

The field of HRM comes into existence in the result of these questions:

How did people come to be employees in their organization?

How were they selected?

Why do they come to work on regular basis?

How do they know what to do on their jobs?

How does management know if the employees are performing adequately?

And if they are not, what can be done about it?

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Will today employees be adequately prepared for the technologically

advanced work the organization will require of them in the years ahead?

What is the compensation process?

The HR department of McDonald’s fulfills all the requirement of these questions

in the true sense of the meaning. As HR department deals with people

McDonald’s strongly believe in well being of people because it is a known

quotation that

“If you take over the liabilities of your employees they will take yours”

HR Functions Of McDonald’s:

HR department of McDonald’s Pakistan does certain functions :

Planning

Recruitment & selection

Training

Administration

Company manuals

Performance management

Decision procedures

Define company’s policy

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2.3 Job Analysis Method:

Job analysis is the procedure of determining the duties and skills required for a job

and the kind of person who should hired for it.

Analyzing the job in McDonald’s is done by the Human Resource Department.

They develop the job description related to different departments regarding their

duties, responsibilities, reporting relationships, working conditions and

supervisory responsibilities. Once when the job description is prepared,

restructuring in the job is done based on the observations of the seniors.

In McDonald’s job Analysis is done on the basis of Interviews.

2.4 Job Evaluation Method:

Job Evaluation means making decision about the wages and salaries of the

employees on the basis of job analysis it can also be called as compensation.

In McDonald There are two types of working hour’s employees:

Part Time Employees

Full Time Employees

In McDonald’s they have predefined standards on which employees are

awarded on the basis of their skill, knowledge and experience. The Full Time

Working Employees are given salary on monthly basis were as the part time

employees are given salary on the basis of the total hours they have worked

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Chapter 3

Recruitment & Selection

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Recruitment and Selection Process

3.1 Recruitment:

Recruitment is a phase that immediate precedes selection. Its purpose is to pave

the way of the selection process by producing ideally, the smallest number if

candidates who appear to be capable. The objective of recruitment procedure is to

attract suitable candidates in order to produce a short list for future investigation

in the selection process.

3.2 Recruitment process:

In McDonald’s the recruiting and hiring process for selecting starts from the

applications submitted by the individual. We provide their CVs along with the

applications. These applications and CVs are screened out on the basis of:

Merit;

Institute; and

Experience etc.

After this, The Candidates who meet the criteria are selected for the further

process. Then the H.R Department lists out the salient features of the CVs (only

the accepted CVs). Then the H.R. Manager takes a test based on:

English comprehension

Basic mathematics

I.Q. and

Some questions about the particular job, for which the

applicants have applied.

In McDonald’s Recruitment is done on the demand of the Organization. There are

two types of Recruitment is done

Internal Recruitment

External Recruitment

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3.2.1 Internal Recruitment:

McDonald’s do internal recruiting i.e. they select the candidates from the inside

by considering a specific number of internal potential candidates who have

applied for the job on the basis of their past performances and qualifications for

the required job. Any employee at a reasonable post can submit his /her

application for the job. The management has all the information relating to the

person’s record about the job he/she is currently performing. On yearly basis, the

summary of the employees is maintained in the form of records, which gives the

organization maximum chance in selecting the potential employees as the heads of

the departments. The HR manager and the Head Manager of the specific

department interview the selected employees.

3.2.2 External Recruitment:

McDonald’s often go for the external recruitment they mostly try to go for the

internal recruitment or internal promotion of the employee to the high post but in

case an employee leaves the organization They Organization have a bulk of

application received through the website www.rozee.pk .The organization

advertise through newspapers or web.

Criteria Required For Employment:

The qualifications required for employment in McDonald’s are as follows:

Appearance and grooming

Professional Qualifications

Experience and knowledge

Communication skill in English

Leadership skills

Potential for growth

Reasoning and Judgment

Computer skills

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3.3 Selection Process:

With the pool of applicants, the next step is to select the right person for the job

this usually means whittling down the applicant pool by using the screening tools.

In McDonald the selection process involves the following steps:

Initial Screening

Employment Test

Background Investigation

Medical Examination

Permanent job offer

Employment Tests:

Every big organization in the world uses a test for the hiring of people, from

inside as well as outside. These companies use many types of tests to judge the

people we are hiring and to have utmost guarantee that the people we are hiring

are perfect from every point of view. These test judge the candidate according to

his mental and cognitive abilities.

McDonald’s take tests as far as their candidates are concerned to check there full

abilities. The tests are of different nature like:

Test Of Cognitive Abilities

These kind of tests include IQ tests, general and intellectual abilities,

verbal fluency, vocabulary etc. These tests are generally conducted while

recruiting executives and supervisors.

Motor And Physical Ability Tests

These tests include checking the performance of the employee usually

working on the machines in operation department to check their reflexes

and while working at their work place.

Measuring Personality Interests

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Involves taking into consideration the personal interests and motivations of

the person in his field.

Candidate’s ratio:

Within the pool of candidates, if the demand is for 1 employee then the ratio for

selecting is the employees is 1:5, and if the demand is for 2 employees then the

ratio becomes 2:10 and so on.

Interviews:

When the managers make the selection the phase of interviewing the employee

comes. The interview is taken from the employees in two ways i.e.

Top level interviews

Low-level interviews.

In top-level interviews the General and Division Manager of McDonald’s takes

the interview of candidates for the Executive post. In low-level interviews the

Heads of the departments takes the interviews of candidates for the Associate

heads, officers, managers, and assistant manager’s posts. After the selection is

made the General Manager approves the candidates.

Type of Interviews:

Paneled interviews are taken from the candidates and the panel consists of the HR

manager and the head of the particular department for the interview is being

conducted. If an interview for an important post has to be done for a function head

then the GM himself indulges into it and performs a combined interview.

Background Investigation:

Once an employee is appointed the investigations and reference checks are done

by the HR manager. In McDonald’s, reference checking is referred to as revising

the ‘Job History’ which contains

Job applied for i.e. the experience of the employee for the job.

Relevant qualifications.

Salary

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After Conducing the interview and all relevant investigation they employee is

called to join the job.

Number of employees:

The ratio of women working in McDonald’s with respect to men is 1:3. Total

employees in McDonald’s are more than 1300 plus. The policy of McDonald’s is

to give females full chance to do the job. There are 3 shifts operated in

McDonald’s

Morning Shift

Evening Shift

Night Shift

.

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Chapter 4

Training & Development

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Training and Development

4.1 Orientation:

Orientation of the new employee is carried out according to priority of heads.

Firstly the employee is formally told about what kind of outfit to wear on work.

Then he/ she are provided with the orientation kit. The employee has to spend 15

– 20 days in different departments under one specific department like if an

employee is appointed in the HR department then he/she has to spend 20 days in

different sub departments under the HR Department like HR development

department, HR administration Department, Hr training Department etc. The head

of the department specify the objectives to be carried out.

Employees get the evaluation time of 6 months to prove their skills and

knowledge about the job being done. And after 6 months they are given the

appointment letters as permanent employees.

4.2 Training:

The employees are given training in the “Training Room” in the form of lectures.

Firstly the employee is given the on-job training and then he/she is given the

actual task to perform. McDonald’s arranges summer crash courses and wrap

section for the employees. Job Rotation is done within the specific departments

and not outside the departments.

4.3 Development:

McDonald’s is a large organization with many employees working in different

departments of the company. Every year the company hires many people for it

executive as well as managerial posts. In McDonald’s there are different types of

development plans for management for e-g MDP 1, MDP 2 , MDP 3 and CLDC

(Crew Leader Development Course).There are also development programs for

the low level jobs for enhancing the skills of the employees

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Career Development and Fair Treatment:

McDonald’s provides facilities to employees for career development during their

employment. Different training courses are offered to their employees such as

summer crash courses arranged. Transfers of the employees are carried out with

the consent of the employees. The communication of employees is directly with

their head of the department. There is a vital concept of two-way communication.

At McDonald's, employment is at will. This means that employees are free to

terminate their employment at any time, for any reason, with or without cause, and

McDonald's retains the same rights. . The Management career in McDonald's

Operations starts from the position of Trainee Manager, and follow the path like

the one outlined below.

Trainee Manager

Second Assistant Manager

First Assistant Manager

Restaurant Manager

Beyond Manager

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Chapter 5

Performance Appraisal Process &

Methods

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Performance Appraisal

5.1 Performance Appraisal:

Performance Appraisal is a structured formal interaction between a subordinate

and supervisor ,that usually takes the form of a periodic interview , in which the

work performance of the subordinate is examined and discussed, with a view to

identify weakness and strength as well as opportunities for improvement and skill

development.

5.1.1 Performance Appraisal Method:

Employees in McDonald’s have a race to win based on their efforts. The

employees do their best to give the best performance through their skills and

knowledge. A kind of competition is among the employees to become the best

employee. The appraisal methods used are of two types, i.e.

Graphical Rating Scale

360 degree Feedback

Appraisal interview is taken by the department head only. Progress report is in the

hands of the department head. Yearly appraisals of employees are done with in

June-July. Appraisals are done yearly but they can also be done at any time of the

year by the department head on the basis of employee’s marvelous performance.

Through the graphical rating scale the head of the department rate the person

according to the performance of its work, skill, knowledge, experience and also on

the performance in the training programs and after the assessment according to the

rating scale rate the employee is appraised.

Upward feedback is done by 360 degrees i.e. information is collected “all

around” an employee from his or her supervisors, subordinates, peers and

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customers. This term is also known as “multi source assessment”. Subordinates

can appraise their seniors. With the help of the “Employee Satisfaction Survey”

the heads get to know which employee is giving what type of output. Raise in

salary is done by 10%and if performance is also counted then 20% increment is

given at any time of the year.

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Chapter 6

Compensation and Benefits

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Compensation and Benefits

6.1 Compensation:

Compensation means all forms of pay or rewards going to employee and arising

from their employment .It has two main components, direct financial payments

(wages, salaries, commission, and bonuses). And indirect payments (financial

benefits like employer – paid insurance and vacations).

6.2 Employee Benefits:

McDonald's benefits program is designed to attract, energize, reward and retain

talented people who will produce superior business results and enhance their

leadership position. They recognize the importance of a strong benefits program.

People Promise:

People Promise is a statement of commitment to every person in the McDonald's

system. It is how they remind people what they can expect and how high their

goal is:

“To be the best employer in each community around the world”

McDonald's and its independent owner/operators have made a commitment to

their employees that they strive to achieve with their actions every day. And to

make sure they deliver on this promise, they have in place five people principles.

These people principles reflect McDonald's values and describe the culture they

embrace.

Respect and Recognition:

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Managers treat employees, as they would want to be treated. Employees are

respected and valued. Employees are recognized formally for good work

performance, extra effort, and teamwork and customer service.

Values and Leadership Behaviors:

All of employees act in the best interest of the Company. They communicate

openly, listening for understanding and valuing diverse opinions. They accept

personal accountability. They coach and learn.

Competitive Pay and Benefits:

Pay is at or above local market. Employees value their pay and benefits.

Learning, Development and Personal Growth:

Employees receive work experience that teaches skills and values that last a

lifetime. Employees are provided the tools they need to develop personally and

professionally.

Resources to Get the Job Done:

Employees have the resources they need to serve the customer. Restaurants are

adequately staffed to allow for a good customer experience as well as to provide

schedule flexibility, work-life balance and time for training

6.2.1 Benefit Categories:

For McDonald's Corporation employees at corporate, division and region offices,

many benefits those are:

Medical and hospital facilities

Free furnishing on having new home (managerial level)

Provident fund ( ESOP)

Company vehicles are provided to employees

Choice to get new car after five years

Umrah packages are offered to employees

Leasing facilities are provided to buy cars, motorbikes, etc

Picnics are arranged once every quarter

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McDonald’s offer long-term benefits to its employees, like giving them

multinational visas, etc.

Chapter 7

Stress Management & Negotiation

Techniques

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Stress Management

7.1 Job Stress:

Job stress is a chronic disease caused by conditions in the workplace that

negatively affect an individual's performance and/or overall well-being of his

body and mind

Organizational managers are interested in maintaining a low level of job stress for

good reasons: high level of stress a result in low productivity, increased

absenteeism and turnover, and an assortment of other employee problems

including alcoholism, drug abuse and a host of cardiovascular problems. Job

Related Stress has been associated with a vast array of diseases, such as coronary

heart disease, hypertension, peptic ulcers, colitis and various psychological

problems including anxiety and depression

7.1.1 Causes of Job Stress:

The causes of Job Stress are:

Role Conflict

Work overload

Job Insecurity

High Demand for performance

Technology

At McDonald’s Job Stress is handled by conducting counseling sections in which

the Counselor identifies the flaw of the employees. Their objective is if people are

delivering and if they have any problem they solve it through counseling.

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7.2 Negotiation Techniques:

Negotiation Techniques are the ways the employer communicates its expectation

and goals of the organization to the employees.

At McDonald the expectations of the employer are:

On Time,

Neat and Clean

Skills and Training

Standards

Teamwork

Clean Spotless... Tidy... Sparkling. Customers expect every

McDonald's will be clean.

Welcomed Guest crewmembers make each customer feel like a

welcomed guest.

Service depends on crewmembers to deliver accurate and friendly

service with a smile.

To communicate these expectations Crew meeting are conducted

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Critical Evaluation and Recommendations

After critically evaluating the HR Functions of McDonald’s we recommend the

following suggestions

Job Analysis information should be collected through structured

questionnaire because it is more suitable method to collect job analysis

information in an organization like McDonald’s because it is inexpensive

and efficient way to obtain information from a large number of employees.

McDonald is using “job position” source of internal recruitment but it

should also use Rehiring as a source of internal recruitment because

former employees are known quantities, and already familiar with the

company’s culture, style, and ways of doing things. This will also reduce

the training expenses.

McDonald’s should use performance stimulation test for managerial

positions because it is effective method for selecting and promoting

managerial position .Although it is expensive but very effective method.

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