Assessing The Brief History Of Mcdonalds Business Essay

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McDonalds start work in 1955 under the supervision of Ray Krok who has the charismatic abilities to lead .McDonald starts its working in UK during 1974.

McDonalds has 60% its original restaurants and 40% are its franchises all over the world. McDonalds currently is working 110 countries and providing best food, it daily 48 million people served and work according to their vision and mission that is

Quality, service, cleanliness and value.

Because Ray Krock knew that, that is the only way to get success, maintain the quality of food, give excellent services to their customers and do care about all hygiene and safety measures. If we see the figures of employees which are working in UK stores in 2004, they were 43491 employees working, 40699 were doing their jobs on hourly basis and 500 were management staff

Assignment Aim:

Our assignment aim is how HR planning is implemented in an organization? Hr planning is depends upon the size of the organization how large is the company and also depends upon the nature of the organization as far as company like McDonald is concerned large HRM department which dealing no of the customers daily so its Hr planning is implemented in a way like this they make proper policies and procedures and developing methods to follow the procedures that how these procedures is supposed to follow and continuously monitors and if rules are not properly followed than give advice on it.

Objective of Study:

Different topics I cover in this assignment regarding human resource management like

Strategic capabilities which includes core competencies, staffing policies, training and development,

Long and short term strategy features, HR strategy mix issues, organizational culture, Attracting selecting and recruiting employees

Disciplinary and grievance procedure and problem of these


In today management , every manager believes that its organization can exists and go top of the world just because of its employees and staff which they hired , because every company's management believe that, so they want to get top talented staff from all over the world.

Management knew that talented employees are the way to lead the success and without them, organization cannot achieve goal. Because every organization says that their employees are their core resource and asset.


while I am studying the Human Resource Management and practices in the corporate world then I see that McDonald's which is the leader of food industry has all the best practices of Human Resource Management , which are necessary to any organization get sustainable competitive advantages over their competitors like McDonald's are doing best in

Planning of their employees

Retention of their employees

Staffing their employees

Achieving performance measures

Benefits and companions for their employees

Mentoring and counseling

Controlling and leadership


Through Human Resource Management McDonald's recruit top talented employees from all over the world which help to McDonald's to achieve the Sustainable competitive Advantage to over the competitors like KFC, Burger king and Wendy. Because these restaurants are providing the same food in the market and that's why McDonald's has to face a direct competitions from these restaurants.

As we know that SCA are the advantages over the competitors and it is very difficult and hard to get the competitors to achieve that. It may be its brands name, its patents, its products or its excellent customer care and services.

There are three sustainable competitive advantages in McDonald's which are

Organizational Behavior and Managerial Expertise

Dream of the McDonald's

Technological structure and Resource of the Company.


There should be good integration between Human Resource Management and other organizational process, means that every employees should know that what is its goal and what have to do , in other word every employee should know that what is its goal and what have to do , in other words every employee of the McDonald's work for the single goal , employees must work according to the hour of the need, and should change its working according to the customer's needs , and also trends prevailing in the market.

Previously this thing was missed by McDonald's management and McDonald's have to pay its price but now McDonald's has achieved now.


Dream of the McDonald's is the largest advantage over the competitors , basically it is the vision of the company , McDonald's start its working in 1955 and aligned its vision working , working is the largest advantage for any organization and McDonald's achieved that .

Company Brands which is "BEHIND THE GOLDNE ARCHES" usually reveals its vision. McDonald's vision for those people to provide services who has less time to go in proper restaurants and for quality of food.


For any company , technological structure and its financial assets are competitive advantages of the company , because this is the way through company give a complete and win over their competitors. No doubt McDonald's has all this and after 2003 McDonald's really working on these advantages.


Strategically capability means that management has ability to take decisions for long term according to company mission and vision. When strategically decision plus of HR management then the mix would be success and this policy also followed by the McDonald's management , because management know the strategic decisions always impact upon the organizational performance but if management successful to get perfect match between HR and strategic decisions then their success is no dream.

So that's why to complete corporation vision, management recruit perfect matching employees which can work with strategic lines of McDonald's.

To get above objectives McDonald's does following works like

Training and development for employees

staffing policies

organizational learning

Developing people's awareness


To train employees is very important activity in Human Resource Management , because there is a lot of changes in consumer preference comes day by day and trends change so in McDonald's training and development process always continue , because McDonald's has to change its menu according to different culture in different countries like India , Nepal , Pakistan and Bangladesh.

Usually in McDonald's preferred way to train is (OJT) means on the job training . Experienced employee which the part of training squads give training to new employees.


McDonald's is an international organization and it believe upon diversification , McDonald's organization believe that every nations get equal opportunity to get exposure in McDonald's with out any racism , discrimination and religion.

So that's why we we visit any store of McDonald's then we see that there are different kinds of people some one form India , Nipale , Pakistan , Germany and from all over the world .

McDonald's has different aims while staffing.

McDonald's do care about that country where it is working and also preferred local sourcing

Staff only Talented , hard working and honest people

equal opportunity to women to working in McDonald's there is 37% women are working in McDonald's restaurants management 24% in Middle management and 25% in top level management.


Organizational learning is a process that increases its chances to acceptance in the market and enable to employees to respond any change which develop by the management in internally or any change happened out side, means that has McDonald's received perception from all over the world.

There was researched conducted by "James Whatson who was professor of anthropology and chines society at Horvord "and the result was amazing , he conducted the research in five countries of Asia and he received that McDonald's is very popular and has very good perceptions in the consumer of that countries and specially young people love to go McDonald's and love to work over there , because before McDonald's , university students have to do low level jobs and now they can work in McDonald's and don't give all burden to their families.

And also people feel free when they visit McDonald's n enjoy the internet facility over there.


There is only one thing which have to change in McDonald's Management that is McDonald's has not defined relationship between staff and Management, so that's why employees are reluctant to speak their manger and they don't know how to communicate with top management.

Features of long Term and Short Term Hr Strategy and Issues:

Definition of short term and long term can be change with respect to different peoples. Long term time period shows some definite stage of completion like completion of college degree is shows some definite time period. And short term means something which is incomplete like first year at college is incomplete or short term because one year of time is still left.

Strategies of HR are very effective tool to proper implementing the policies which are made by already like the hiring of the peoples and there retention, Salaries and method of payment, and the acceptable behaviour in the organization which follows the culture of the organization

Long term hr strategy features are


Development / Growth / improvement



Retention of workers

In the long run company's strategies are of different natures like formulation of the strategies and their proper implementation and its continuous growth with the passage of time as it required and in case of failure remaking of policies is also the feature of Hr strategies. Retention of employees is one of the big issues and it is the long term feature of McDonald to retain the employee as long as possible.

Short Term hr strategy features are

Motivate Employee

Friendly environment

Training and development

Actually short term features are leads to long term benefits like Motivation is very important short term feature to retain the employee for long term by giving different benefits and incentives and friendly environment is very necessary to get the best out of the employees and to increase the performance of the organization. Training and development also the feature of short term hr strategy.

Hr strategies are applied to the whole organization and hr strategy mix issues of also different in nature like it may be related to the structure of the organization, Quality of the goods and services, Culture, Values and commitments etc. Some other issues company have to face like while recruiting the peoples and after recruiting retention is very big issue in front of the organizations. There development and learning and performance of the employees etc these are the big main issues which McDonald always facing. Solution of these issues could be different like to retain the employees give possible benefits and incentives, regularly training programs are held by the company to improve the performance of the employees and to increase the productivity of the organization

Attracting, Recruiting, and Selecting Talents:

There are different ways to occupy the people some organization essential CV's from applicants, some take telephonic interviews from their likely employees and some through online. Through online company has its own staffing web site, and people just visit the site, take test and book their meeting

Because online recruiting allow the company to recognize applicants inexpensively and speedily so that's why some the excellence of those applicants as not good as other sources have. There is another source which is using in McDonald's that is ,references from the existing employees , because the peoples who recommend knows the calliper of the employees so that's why they only suggest those people who are really competent and adjust in McDonald's culture.

McDonald also uses different ways to hire employees on hourly basis. Usually jobs ore past in the store, and satisfying the exisisting employees friends, because history shows that it could be more useful and that's an opportunity for local people to get the job in McDonald's. Apart from the job pasting system store approaches its local job centre and also displays job vacancies in job fair to get the right person.

In the 60% McDonald's store crew members which are particular for work are usually aged 20 or under and they are going to practice their first job. McDonald's also provide a carrier opportunity for young labour force.

During recruitment Interviewer must take apart from any gender, race, colour either it is black or white, in other words during interview there would be no question which hurts any interviewee.

During recruiting , one thing have to see very intelligently and intensely that is "Employees earnings", because for many reasons employees have to change career , e.g. they have to move elsewhere , returning to education or a new opportunity elsewhere . Because recruiting and training the staff is very costly and time consuming, So McDonald's management have to keep the staff earnings its minimum level. One way of doing or keeping minimum staff turnover is that McDonald's should treat well to the employees and give them enough incentives and good wage rate. McDonald also looking for the employees who are fast and efficient in working and delivering the goods to the customers

As far as effectiveness is concerned this is very effective process but it has some advantage like In recruitment process that company get the peoples who are most competent and brilliant and disadvantage is that employee's turnover and it made be more efficient by giving benefits to the employees and continuous training programs

Organizational Design:

Organizational traditions are very important for the company it means that what are the company values and norms and their practices. And traditions of McDonald are totally based on its vision statement like Quality products and services. One thing which is very important and included in the culture of the organization is diversifications here diversification means growth of the business globally. And this is practicing in the organization and also there is no discrimination between Black and white, religion .nationality and gender and these are the thing which is practicing in the McDonald.

Culture of the organization helps a lot to run your organization policy like McDonalds strategy regarding recruitment is very clear and effective select the right person for the right place at a right time and retention of these employees through a proper channel and after complete investigation and the culture of the organization also support this strategy. But some time when gives some preferences to some peoples than it hinders. like some time some branches recruiter doing wrong practices like they give special preferences to their relatives, friends and nationality preferences also practicing very commonly and peoples of the other countries or nationalities neglected. Need to change this thing when you recruiting then there should be no discrimination between any gender, nationality and background. Every person gives equal right but on merit.

There are some ethical issues regarding recruiting and selection because when McDonald's launched its recruiting site after that company gather all information through internet and save in its database , now it becomes the responsibility of organization to keep its secret and don't give it to any third party unless it acquire from any security purposes. But some time secret information also leaking this is also need to change.

Disciplinary Procedure:

A disciplinary procedure is a process which tells to the employee that how he/she have to act in the work place? What are the system and the regulations of the company? What type of performance organization compulsory?

These disciplinary actions must be in writing normally And McDonald also have instruction manual for the employees that how is supposed to behave in the work and what type of actions might be taken. In 2004 Disciplinary procedure become must in UK for all types of businesses and also for any size (Small or Large) of business.

Disciplinary Policy and its Implication:

Disciplinary procedure is based on following steps which are discussed below.

Informal Warning or friendly Advice

Fire / Suspend /Deferment

Investigation / Analysis of case

Official Hearing

Official Action

Appeal right

Informal warning or Friendly advice:

It is the responsibility of the line manger to control the environment if anything happened in the work place than line manger need to solve the issue in a very friendly environment or by giving some advice s and support if required.

Suspend / Fire / Deferment:

Employee only fired if the case is very serious. But if the case is not very serious than it is possible that may be suspended from the work till the investigating is being finished. And the time of this suspension is elastic at any time suspended employee called back for investigation.

Analysing the case / Investigate the case:

Investigation is very significant part of the disciplinary procedure. Initial investigation is the responsibility of the line manger or supervisor. But if the case is become more serious than director and Human Resource department head conduct a investing by appointing mangers of different departments. This investigation includes interviews from the workers and examinations of documents and witnesses from the other workers from the work place.

Proper Hearing:

After completing the investigation comes formal hearing against the employee. Normally hearing is conducted in panels of more than 2 peoples and must send the letter to employee before the final hearing at least five days. In the letter to employee and must mentioned the points like time and date of hearing, and reason why final hearing is conducted and the possible results of this hearing.

Formal Action:

After final hearing if problem is detected than action will be taken. Authorities like line manger can only give oral warning, operational head only give written warning, and directors action is final written warning but if the case is serious than can be happened

Appeals Right:

Employers have a complete right to appeal against the decision and any action which is announced by the management and appeal must be in writing and within 5 working days.

Gross Misconduct:

Some of the misconducts are serious in nature and the reaction can be a direct fire from the job without giving any prior notice. These gross misconducts includes

Stealing, dishonesty, determined misrepresentation of accounts and try to damage the property of the company

some sort of fighting in the work place

In case of carelessness company faces loss or any type of grievance

Involve in some illegal activity like alcohol and drugs dealing

Grievance procedure and its practicing in McDonald:

Grievances are filled by employee against the employer it is must that all the manger and supervisors aware from the grievance procedure which are practicing on the organization.

Grievance procedure can be handled by two ways



Informal Process:

In the informal process try to solve the issue after discussion the issue with the person to whom it happen in a friendly environment but in case of failure formal method is adopted.

Grievance procedure steps:

Grievance Statement


The Appeal Meeting

Grievance Statement:

First step is grievance in writing against the person (Employer)


Second step is meeting with the employer for discussion about the issue.and the thing which must keep in mind are time and place must be suitable for both and mentioned all the thing to employer for their act

The appeal meeting

If the first meeting become dissolved or the case is dismissed but employee not happy by the decision then employee can appeal but he / she have to inform to the employer about the meeting

These are the disciplinary and grievance procedures and there steps which I discussed above but the problem is its implications it is not properly implicated steps are not followed and some time proper evidences are not available to reach the conclusion and some time decision makers made wrong decisions for their personal clashes. So there is need to improve all these issues.


After the complete and detailed analysis I conclude that Human resource is very important for any organization and especially for the organization alike McDonald which deals in customers and employees and provide good quality food and services to the customers and as well as make their employees happy is the first priority of the McDonald. Competitive advantages which McDonald have edge to their competitors like organizational culture, structure of the organization, training policies and retention of employees and as well as maintaining the discipline in the organization and in case of misconduct make appropriate actions is the responsibility of the organization.