Human resource management of McDonald Essay

MCDONALDS weedMcDonalds Corporation is the worlds largest drawing string of beefburger fast food eating places which serves approximately 68 trillion clients on workaday around 119 different countries and haves 30,000 restaurants worldwide. McDonalds headquarter is in oak tree Brook, Illinois, USA and familiarity was started as a barbecue restaurant in 1940 by Richard and Maurice McDonald. In 1948, deliverers of the comp whatever reorganized the backup to a hamburger stand and thenceforth in 1955 businessman Ray Kroc joined the comp solely as the first franchise agent. Ray Kroc purchased the chain from the McDonald brother and do it grow worldwide. (McDonald Corporation)The corporation itself either operates a McDonalds restaurant or by a franchisee. McDonalds Corporation revenues argon obtained from the rent, fees pay by the franchisees, royalties and the sales from the restaurants operated by McDonalds Corporation. McDonalds Corporation had annual revenues of $28.15 mi llion in the year 2013 whereas their profits were $5.6 billion. ( rube finance) McDonalds product line includes sell hamburgers, cheeseburgers, french fries, chicken items, breakfast items, desserts, milkshakes and soft drinks. Due to changing consumer taste perception and to survive in this rivalrous and ever changing environment McDonalds Corporation has added salads, wraps, fish, fruit and smoothies to its menu list. (McDonald Corporation)PURPOSE OF MCDONALDS CORPORATIONThe principal(prenominal) purpose of McDonalds Corporation is to serve fast food and to do everything that fire be d ace to respect thecustomer and to have customer trust in their brand.WHY I CHOSE MCDONALDS CORPORATION undermentioned argon the reasons why I choose McDonalds Corporation 1. McDonalds Corporation is one the world largest and leading fast food chain 2. McDonalds Corporation employs 1.8 billion people worldwide and they have one of the best HR practices 3. McDonald sells almost 75 hamburgers ever y second which attracts either HRM student to study their HR practicesBUSINESS MODEL OF MCDONALDS CORPORATIONMcDonald earns its revenues from investing in properties, as a franchiser of a restaurant and as an operator of restaurants. Almost 80% of the bon ton restaurants are operated by franchisees, which are bound to pay 4% of their revenue to McDonald, as well as the rent. In most of the cases, McDonald owns both the building and land which results in a stable flow of income do the franchisees bear most part of the risks. The remain 15% of restaurants are owned and directly operated by McDonald. Considering the business manakin of other fast-food chains the business model of McDonald is different.Other than franchisee fee and the trade fees that are calculated as sales, McDonald do some periods collect rents that are also considered as sales. Other than revenues generated from the franchise agreement, McDonald may also own or they can lease the property where McDonalds franc hises are located. jibe to the policy of McDonald, the business does not involve itself in making any direct sale of food or any other significant to its franchisees but it organizes the food and materials required for the franchises through an sanction third approved logistic operators. McDonalds is also involved in identifying the locations, developing new-sprung(prenominal) products and quality.HUMAN imaging forethoughtHuman resource focussing is an speak to by which companys most valued assets (people) are managed. For any company to achieve succeeder its human resource has to individually and conjointly contribute and this can moreover be achieved through proper management. straitlaced management of company human resource not only assist the company to achieve its objective, but they achieve it with greater efficiency. Human resourcefulness Management attend tos the organization to achieve its desired goals and successby the help of its people. Human Resource Man agement, in that respectfore, is utilized in the creation of decision on the plans of the organization. These plans are linked with employee relationships, recruitment, readying and exploitation, performance management and rewards for employees. Therefore, human resource strategies developed are to be in line with organization business plan to help the business to be successful.MCDONALDS HUMAN RESOURCE MANAGEMENTMcDonalds Corporation in club to achieve success and competitive advantage developed it human resource management dodging focused on four areas A) STRATEGIC HUMAN RESOURCES MANAGEMENT McDonalds human resource strategies and practices were synchronized to the company business dodge and thereafter the HR department helped to realized the business plan or strategy by forming it into company HR practices in relation of personal development and hiring. B) MANAGEMENT TRANSFORMATION AND CHANGE One of the way HR conk of McDonald helped organization to achieve competitive adva ntage is by identifying the changes required and thereafter implementing it. This strategy served as a catalyst for company successful growth.C) EMPLOYEE MANAGEMENT HR department tried to understand the problem which employees face daily and what are their needs and thereafter making an effort that their problems are understand and their needs were met. D) MANAGEMENT OF ORGANIZATION ADMINISTRATION It was do surely by HR department that the process of employees hiring, training, evaluating, rewarding and promotion were designed in such a way that they were in line with the strategies of McDonald. In order to align these four focus area following things were done by McDonald 1. PERSONNEL STRUCTURE As the business model of McDonald shows that it generates most of it revenues from franchising, therefore, there are three categories in their structure which are corporate staff, restaurant workers and franchisees.The control staff which either operates from company headquarter or region al offices is amenable for controlling and managing the franchises to bemuse sure that standards of McDonald are maintained and the products are delivered at time. Restaurant worker constitutes the biggest part of company structure. They are controlled through supervisors who tarradiddle to assistant manager. Most of this staff works on part time basis and are paid on an hourly basis. Finally, thefranchises that are managed by their owners but according to the standards set by McDonalds.2. PERFORMANCE MANAGEMENT In order to make sure that productivity is always high the HR department has put a process in order to last which staff is not working according to the desired expectations and what solution is to be implemented to bring that staff up to the required expectations. This is done by performance review of employee that can be done anytime or the retardation performance review which is carried out after each six months. ground on these performances reviews it is decided whi ch staff will get promoted which staff requires training so his performance can be increased. This way of management not only serves as motivation for employees, but it also creates a competitive environment among the staff which in turn helps the productivity of employees to increase.3. MOTIVATION & recognize Since most of McDonald staff have low wages and are paid on an hourly basis which results in large staff turnover, therefore, company has to make sure that their staff is motivated and they obtain them motivated by awarding staff with different reward schemes and other perquisites. This not only increases their motivation to work for McDonald but also helps them to increase their productivity4. genteelness McDonald spends almost $10 million each year and trains approximately 55,000 employees to make sure that make sure that their employees have valuable skills that are needed. At first all new employees are given introduction well-nigh the company and thereafter staff train ers train them properly to make sure they develop all required necessary skills to work in the organization. It is made sure thereafter that these employees know how to use the latest foodservice equipment and they understand all McDonalds operational procedures.To make training such(prenominal) easier McDonald has published gradually manuals, video tapes and quality reference guides which explain each and every distributor point of the gambol process. Employees are also taught communication, interpersonal and organizational skills. This enables their employees to do their job at the best possible way and, therefore, they serve the customer with highest standards making McDonalds customerservice as one of the best in fast food supply companies.5. MANAGEMENT DEVELOPMENT McDonald has designed McDonald victimisation Program (MDP) to develop leadership skills within employees so they can be successful leaders. Various courses of this programme are held for employees of different le vel of management and for franchisees.CONCLUSIONMcDonalds now a day is one the fastest growing corporation and this is due to the reason of proper management of their human resources. This clear shows that the corporation is on the right track and they have been able to keep the motivation levels of their employees high. This has been done by proper reward schemes for the employees based of their performances. comme il faut training is provided to the newcomer making it much easier for new employee to pick up and to get comfortable with the job quickly.However, if McDonalds Corporation continuously strives to and improve its HRM strategies then McDonald can continue to grow at much more faster pace. Hence it can be concluded the HRM strategies of McDonalds Corporation is in line with their business model and growth strategies and this can be verified from their success up to this date.REFERENCESIngmar, B., Carl, F., & Hyeon, J., (2007). Institutional theory and MNC infantryman H RM practices evidence from a three-country study. _Journal of foreign Business Studies,38,_430-436Paula, C., (2014). Many moving separate Factors influencing the effectiveness of HRM practices designed to improve knowledge transfer within MNCs. _Journal of International Business Studies,45,_ 63-72Seeking Alpha (2014), McDonalds Business Model, Valuation And borderline Wage Legislation, Retrieved March 22, 2014, fromhttp//seekingalpha.com/article/2052223-mcdonalds-business-model-valuation-and-minimum-wage-legislationUK essays (2003), Evaluating Human Resource Strategies Implemented by McDonalds, Retrieved March 22, 2014, from http//www.ukessays.com/essays/business/evaluating-human-resource-strategies-implemented-by-mcdonalds-business-essay.phpMcDonalds (2014), Corporate Info, Retrieved March 22, 2014, from, http//www.mcdonalds.com/us/en/our_story/Corporate_Info.htmlYahoo finance (March 2014), Income Statement, Retrieved March 22, 2014, from, http//finance.yahoo.com/q/is?s=MCD+Incom e+Statement&annual