Analysis Of The Mcdonalds Restaurant Chain Business Essay

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The Mc Donald's Corporation is the world's largest quick service restaurant chain. Over 100 countries there are more than 30,000 restaurants. With a beginning in the 1955 the first Mc Donald's franchise restaurant was open in Des Plaines, Illinois, USA which earned US$366.12 on its first day of business. In 2003 the company recorded over US $40 billion in worldwide sales. The companies currently serve an average of 50 Million people daily.

Source from; Home Mc Donald's.com

http://www.mcdonalds.com/us/en/home.html

Motivation: The full use of human resources gives an organization the opportunity to enter towards a leading position in the world market. The Mc Donald's company uses its own accurate problem solving methods by using the staff for solving the encountering impacts. The company in this current situation follows the principle; "The result is done by a man". For the progress in the fields of quality and productivity Mc Donald's examines its employees as the primary source. This organization has encountered certain various aspects of motivation theories through the based success. Mc Donald's follows the routine of four simple principles, which gives a possibility on increasing the performance of the employees.

Activating a variety of motivation approaching systems for each operating area of the company.

Personnel's should have direct achievable objectives in order to proceed. Aims per person- the better.

The aims should change rapidly; the manager must consider on new plans for the upcoming half period of the year. For example firstly the focus towards the numbers upon recruiting should be considered, and then he/she later examines the number of applicants whom join back after that the analysis for the increase of the business sales should be done. This system gives a vision to find out various abilities that could be applied for the employees and do the required changes accordingly.

The consideration towards the increasing of the remuneration should be reaching a satisfactory level for the employee.

The motivation system of the company has three main components which is financial encouragement, non financial encouragement and social policy. In Maslow's motivation theory all the three factors mentioned above are described. However accordingly, Maslow states that all the needs must be fulfilled one after another. Therefore, when researching on Mc Donald's strategy and structure it's understandable that only a simultaneous fulfilment of employee's needs will increase an employee's performance.

Moreover, it's not necessary to fulfil all the needs of each and every step, but in reality every moment an employee require certain needs.

Above sources; Mc Donald's Singapore

http://www.mcdonalds.com.sg/

An interpretation of Maslow's hierarchy of needs, represented as a pyramid with the more basic needs at the bottom.

Source; Maslow's Hierarchy of needs

http://en.wikipedia.org/wiki/MaslowHYPERLINK "http://en.wikipedia.org/wiki/Maslow's_hierarchy_of_needs"'HYPERLINK "http://en.wikipedia.org/wiki/Maslow's_hierarchy_of_needs"s_hierarchy_of_needs

The above illustration gives a clear understanding of the motivation concept which is also known as "Maslow's Hierarchy of needs" which also applies for Mc Donald's as explained above.

Problem Statement:

-Employee engagement

The driving behavioral changes and impacts on the environment have connections with the engagements of employees. Factors relating,

Energy usage of lighting devices and other various equipments

As the numbers of the employees increases the energy usage is more required ex:- energy usage on washrooms, conference rooms, restrooms.

Temperature regulations on using heating and air-conditioning

The consideration towards the purchasing company cars

This is focused on purchasing vehicles which travels more distance by using a smaller amount of fuel.

To help control water purification the installation of various water devices

Wastes from the current workplace

The consideration upon the surrounding woodland areas

Accordingly these facts play a role which affects the above main factor, moreover the precautions taken by Mc Donald's is explained briefly on "2.0 Approach".

1.2 Scope / Limitation

Mc Donald's International Franchising

Above sources from; International Franchising Information

http://www.aboutmcdonalds.com/mcd/franchising/international_franchising_information.html

Mc Donald's business roots up to 118 countries throughout the world. In Singapore the company does not seek for franchisees but operates throughout many restaurants.

Moreover, in the USA Mc Donald's franchisees operates in a wide range. Therefore the company seeks highly qualified business people towards the system of owners and operators.

As explained above, these are some of the members, who approve the status in operations in USA.

Source; U.S Franchising

http://www.aboutmcdonalds.com/mcd/franchising/us_franchising.html

Investors

Mc Donald's provides a greater service for customers while creating more advantages and profits for the shareholders. The large production scale, marketing skills and the powerful workforce combination of the owner/operators, suppliers and employees enables all available sources towards "The Plan to Win" strategy.

According to the Mc Donald's investment news,

May 20th - Mc Donald's had introduced the company cash dividends.

June 08th - Global sales rate shows rise 4.8% which was also considered as an aggressive approach towards the sales.

July 23th - Mc Donald's sales rising at 15%

Aug 9th - Global sales increases 7%

Career Opportunities

As for anyone who wills to strive with enthusiasm, responsibility and determination Mc Donald's has a place reserved all the time.

Above sources: Careers; Mc Donalds.com

http://www.mcdonalds.com/us/en/careers.html

Throughout seeking jobs in Mc Donald's, the company also empowers employees towards,

Flexible Schedules - Which helps provide the job seeking employee a schedule which is more balanced and flexible when beginning the journey in Mc Donald's. Also provide information on mentorship and guidance.

Diversity Combination - The workforce of Mc Donald's will always be combined with different people with different thinking and different cultural backgrounds.

Empowering Workforces - Mc Donald's will always empower the workforce with all requirements needed to succeed throughout the world of all industries. Therefore all employee opportunities are distributed fairly.

2.0 Approach

2.1 Literature Review / Design Consideration

When taking a peek into the history of Mc Donald's a whole timeline structure is envisioned. Moreover the history of Mc Donald's begins from the late 1940's.

In 1940 Dick and Mac Mc Donald opens their first Bar-B-Que restaurant in San Bernandino, California, on the fourteenth and E streets. With features of a large menu and car hop service.

Mc Donald's BAR-B-QUE opens (1940)

In 1948 Dick and Mac Donald decides to shut down the restaurant for three months and after three months reopens as Mc Donald's. Initially becomes a drive in self-service restaurant. As for the menu there is nine items introduced which includes hamburger, cheeseburger, milk coffee, soft drinks, potato chips and a slice of pie.

Mc Donald's is founded (1948)

1959 the 100th restaurant opens in Fond Du Lac, Wisconsin, USA.

100th Restaurant (1959)

In 1984 Ray Croc, Senior Chairman and Founder of the board of Mc Donald's passes away on January 14th.

Ray Croc Senior Chairman and Founder of the board of Mc Donald's passes away (1984).

In 2005 Mc Donald's celebrates its 50th anniversary.

In 2005 Mc Donald's celebrates the 50th anniversary on April 15th.

Above previews from; Mc Donald's History

http://www.aboutmcdonalds.com/mcd/our_company/mcd_history.html

Making People the Priority

For the continuous excellence on the marketing of Mc Donald's with the talents of all relating initials of the workplace, the respect towards the employees and all associates are accordance with all laws and regulations.

Moreover Mc Donald's does not recruit underage forced laborers or children. Therefore the business is more focused on high global standards of human rights towards the workforce.

As for the approach on Mc Donald's high commitment all strategies, policies, operations and programs are designed to address all interest of the employees.

Respect, commitment enhancement and talent management are the three main factors on addressing the interests upon all company engagements.

Respect - This creates an atmosphere of inclusive and diverse culture that makes everyone valued.

Commitment enhancement - This drives the employees to higher levels of commitment by enhancing.

Talent management - Develop, attract and retain the talented people of all levels.

Although Mc Donald's follows these strategies the company also had gain recognition for the "40 best companies for diversity". This is supported by " Black enterprise magazine" also by "Fortune magazine" " Top companies for minorities to work"

Values in Practice

-Also valuing the customers through high quality food, service with clean and comfortable welcoming environments on each and every arrival.

-The Mc Donald's system considering the "Three Legged Stool" which symbolizes the owner/operators, suppliers and all company employees. Initially known as the foundation of Mc Donald's, concluding the key of balancing the interest among all three.

-Conducting the businesses ethically with high standards of fairness, honesty and integrity. Though all outcomes shares the responsibility individually which is also accountable.

-The developing profit rates which are also targeted towards to maintain a sustainable growth rate for all shareholders and be more focused on the customers and the systems health.

-Also by changing the system towards the changing customers and new innovations which is followed by various aims and anticipations.

  "Corporate responsibility means many things to many people. At McDonald's, being a responsible company means living our values to enable us to serve food responsibly, and work toward a sustainable future."-Jim Skinner, CEO McDonald's Corporation

Source from; Values- About McDonald's

http://www.aboutmcdonalds.com/mcd/csr/about/values.html

3.0 Data Collection / Implementation

3.1 Primary or Secondary Data / Software or Hardware Consideration

Through all operations equal employment opportunities and other executive orders should be considered. Initially the EEOC and OFCCP which stands for "Equal Employment Opportunity Commission" and "Office of Federal Contract Compliance Programs" are responsible on developing guidelines and overseeing compliance with antidiscrimination laws and executive orders. All noncompliance shall face fines and long time legal restructuring.

Factors mainly considered in these areas are, Race, Sex, Religion, Color, National Origin, Age, Disability and Veteran status.

Moreover unwanted and unwelcome treatment because of race, color, religion, age or disability or other hostile work environment situations whenever the employee is subjected to harassment is considered as severe and abusive.

Accordingly strategic issues of employee resourcing could be categorized as religious discriminations. Making employment decisions because of applicant's religion which is also considered as religious harassment. Hostile work environments due to employee's religion or expressing religious beliefs at work (dressing or various religious objects displayed).

As explained above race and color discrimination could be explained, therefore using race or race-related characteristics to make employment decisions or tolerating the harassment of employees, classifying employees based on race or color, collecting pre-employment information about race for those making hiring decisions. (Using coding resumes)

Even though Mc Donald's has earned a strong reputation as a high diverse company the above mentioned issues could be dependable in certain situations with various probabilities.

Certain situations could be aroused with sexual harassment throughout the resourcing process. This is defined as unwelcome sexual advances, requests for sexual favors, and other verbal and physical conduct of sexual nature some situations. Initially the submission or rejection of the conduct is used as basis for employment decisions.

In addition such conduct unreasonably interferes with work performance or creates hostile work environment. Some sexual conducts is considered explicitly or implicitly as a condition on employment.

Moreover treating the certain individual differently upon employment because of his/her ancestry, ethnicity or accent or he/she is married with some person of a particular nationality, plus making assumptions of the individual of his/her national origin, physic, language or other cultural factors.

The Mc Donald's company has also faced certain turnovers regarding various facts. Reports shows that a senior executive recently put the chains annual employee turnover at 700,000 or nearly 44 percent which is 1.6 million employees worldwide. Moreover reports globally managerial turnover is around 20 percent plus crew members averages 80 to 90 percent also containing significant differences from country to country. But most statistics weren't disclosed for individual markets but China and Germany were pointed as having the lowest annual turnover.

Furthermore describes that if the numbers are low the manager recruits towards the restaurant the more revenue is created. In this case if the manager and the crew members are more experienced it could add much as $100,000 to its annual sales on estimating. Therefore the low turnover could save an amount similar to $10,000 annually.

In order to cut down these outnumbered turnovers managers need to interview the employees encouraging the values of the work and other improvements. McDonald's can obtain a significantly lower group rate from its primary health insurer, the Blue Cross & Blue Shield Association. So far about 70 percent of its franchisees are under the company's various planning strategies. The amount of an employee's co-pay is determined by the franchise.

The age variable could be clearly envisioned on Mc Donald's, people from all walks of life could be seen through the resourcing process.

In some conditions the age variable is also subjected towards discriminations, as for this impact in 1967 the age discrimination in employment act is made by this, it makes

Illegal for an employer to discriminate against any individual age 40 or older when making employment decisions.

Modified by Older Workers Benefit Protection Act in 1990 which prohibits employers from denying benefits to older workers.

When such disability situation arouses the Americans with Disabilities Act gains more importance as it's created on the 1990 (ADA)

Provides equal employment opportunities for individuals with disabilities.

Disability - Physical or mental diminish in ability that substantially limits one or more major life activities

Qualified - can perform the essential functions of the job with or without reasonable accommodation

Reasonable accommodation - modifications in how the work is done or in the work environment.

Subsequently this also contains issues which are

Undue hardship - employer with limited financial resources would not be required to spend large sums of money for accommodations.

ADA prohibits asking job applicants if they have disability

Medical information needs to be kept from other personnel records

When it comes to job design, considering the job tasks and responsibilities employees are expected to perform contains issues of,

The tasks which should be emphasized

How simple or complex these tasks are

The number of tasks the employees can perform

The employees work condition on operating

In addition through the job designing process the company characteristics have influencing factors,

"Smaller companies: Have a more fluid, open ended approach to job design, Need employees to perform multiple tasks and wider array (arrangement) of tasks. Larger companies: Have more bureaucracy and specialization, also need more rules and regulations on how work is done."

Above Source from; Employee Resourcing - Auston Institute of Management & Technology Course Material for Advance Diploma. (Ch-4, Slide-18 Pg- 9)

The factor "Stress" is mostly envisioned and is subjected on considering on related issues on employee resourcing though it results from unclearly defined roles such as,

Overload of the role; too much is expected from or too many demands are placed on employees. Initially explains the opposite which is expecting few onwards.

Role ambiguity (doubtfulness); the uncertainty about the daily task performance expected.

Role Conflict - various tensions caused by unsuitable or incompatible demands in the workplace.

Although flexible work arrangements could be done at this kind of turning points. The allowance for choosing beginning and ending time for the employees (Flextime), reducing the number of working days, making partners towards completing a single job responsibility as two employees could work on a single process (job sharing).

This facts could allow more access for employees to join or retain current workers and help maintain the stressful situations while getting more time to help balance both family and work.

4.0 Discussion

4.1 Critical Analysis of Data collected / Testing and Results Discussions

Poor workforce planning could result towards various issues upon resourcing. In this case the employees right set of skills should be matched to the appropriate time and place which will result very accurately. The company should consider the labor demand fact which is the number and type of employees the company requires. Supplement of the employees also should be concerned in order to direct the appropriate employee to perform and reach the potential state. The labor shortage factor should be considered as in certain times the demand for labor exceeds the available supply. Labor surplus explains the supplement of the labor which is more than the demand.

Source by; People Capability Maturity Module - Wikipedia

http://en.wikipedia.org/wiki/People_Capability_Maturity_Model

The above illustration describes the improving the management and development of the human assets of an organization.

Certain internal factors explain the employee turnover, which is also the voluntary or involuntary termination. This creates stressful situations for the employees plus adds additional costs and time which associates with the new fillings and openings of positions.

Furthermore describes impacts related on strategy and workforce planning which include expansion of operations to gain market share, reduction of operations, mergers (combination of business enterprises into a single enterprise) or acquisitions ( obtaining of controlling interest in the company), size of local labor market and types of skills, economic conditions and unemployment rates, industry trends and actions of competitors.

In some misclassifications the employer could be forced to pay on payroll taxes, overtime pay or for other conditions such as medical coverage's etc. As for Mc Donald's the all above facts are covered in the company policy as the company considers the employees as a valuable asset.

In the fast food industry certain regulatory issues on the recruiting process could be a heavy impact towards the operations for example if a certain employee is unsatisfied with the policies in Mc Donald's and quits he/she might counter by spreading the details to new employees who decides to join the workplace. Moreover code of the ethics should be shared with applicants during recruitment process. The taking of employees from competitors may backfire when new employees leave for a more impressive offer. Discrimination acts shouldn't be expected through the recruiting process therefore firms should use all additional and available sources for all applicants, subsequently if the recruiters are not trained well enough on behavior and the system of asking questions it will result as a great impact to the company. In this case the recruiters should be more aware of all methods and other systems while maintaining a sharp conduct on all applicant data.

5.0 Conclusion

5.1 Discussion on solution

All data on the strategic issues contains methods of solving. Therefore as explained earlier in the introduction Mc Donald's takes the paths created by the company itself on all issues troubleshooting.

"The challenges we face

 

Maintaining a stable and qualified workforce, especially at the restaurant level, is a challenge in the 21st century global economy. The mobility of today's workforce and poor perceptions of employment in some areas of the quick service industry present special challenges for McDonald's.

 As a company, we continue to be adversely impacted by the negativity associated with the term "McJob" in some of the markets where we operate. So, we recognize that we need to distinguish ourselves as a great place to work, both at the staff level, and in the restaurants."

Source; Employment Experience - About Mc Donald's

http://www.aboutmcdonalds.com/mcd/csr/report/employment_experience.html

5.1 Recommendation

The Mc Donald's process contains multi diversity, environmental sustainable approach and accurate methods of problem solving. Moreover if this process continues fairly many issues related employee resourcing or other company impacts will be a simple consideration.

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