McDonald's is the dominant brand and the largest growth in fast-food market in 120 countries on six continents. McDonald's works with over 29.000 stores worldwide and estimated the total turnover in 2000 was over 40 billion dollars. Only a few brands can be on par with McDonald's brand strength and the presence everywhere of the Golden Arches symbol (M-shaped curve in yellow).
However, McDonald's has been rated as the unbeaten brand names - according to research by Interbrand, the brand consulting company leading the world. The study reviewed all the changes, step by step development of the leading brands and offers assessment, estimates the value of each brand. Interbrand has concluded that: "There is a brand that they could be compared with McDonald's on the idea of branding, how to make lasting and attractive, it's spreading quickly. McDonald's is an American brand to conquer the world with the power of two quite different factors - culture and commerce. " McDonald's start from the United States but has quickly become popular worldwide.
McDonald's commitment to become a member of the effectively community that the charity called Ronald McDonald (RMHC) has contributed nearly U.S. $ 250 million for the purpose of funding programs for children around the world since 1984. RMHC is the basis of the Ronald McDonald House program, funding programs for families with children with illnesses so they can be treated at the nearest hospital. The first Ronald McDonald House opened in Philadelphia in 1974 and is now the world has about 200 such homes.
Human resource management (HRM) is responsible for the people dimension of an organization. It has a significant role to play in today's world in that it not only has to assist the organization in achieving its strategic direction, it also has to represent and advocate for the organization's employees. At its broadest level, HRM comprises the functions of staffing, development, motivation, and maintenance. With the aim to providing trained workforce needs of society, HRM programs helps students to quickly integrate and adapt to labor market training programs should be built close to reality, advanced and flexible operation.
Graduated students Administrative staff can work in those departments of the Organization of the Party, State and other political organizations - social, from the central to local levels, particularly Students can work in office management personnel of enterprises.
1. Job Design:
1.1Excellent Dividend Workforce
McDonalds is a restaurant provide fast food so the manager have to make sure that they have enough labors for adopt JOT ( just on time ) in production process. The manager also make sure that there is no extreme labor at one moment while they get lack of labor at the other moment. To avoid that the manger have some strategies to manage their workforce, depend on size of store. For example, McDonald store at 133 New Bridge Road #01-01 Chinatown Point, Singapore #059413, the store open 24 hours, so the manager have to divide the workforce to 3 shifts per day, the first from 7:00am to 3:00pm, the second from 3:00pm to 11:00pm, and the last one from 11:00pm to 7:00am. In one shift, they have 4 persons in the kitchen, 3 persons in reception counter, 2 persons do errands work like clear the tables, throw wastes, put stock in and out, ect. The McDonalds' manager usually recruit young people and adult people for kitchen and counter positions. For kitchen position, male was more preferred because of job require have good health to work in hot, fast, and accuracy environment in long time. Female employees as usually work in reception counter, this positions have some requirements suck as can use the counter and enter customer's order fast and correctly. The counter also require out looking. The elder employees were arranged to work at errands work positions which is not much requirements on health, speed and accuracy.images4.jpg
1.2 McDonalds and Motivation Theories
Human is the most important resources of an organization. They ensure the interaction of financial, industrial, and other resources to the organization can function. Today, the management experience to realize that the financial rewards can not only in the category of a staff incentive. Employees need to be considered as an entity led to the search engines non-financial. There are many engines did not exist a financial connection with the satisfaction of the needs of employees, such as recognition of his participation, decided to perform the growth of individuals, and others .
McDonalds 'also applies the theory of two factors' written by Frederick Herzberg, which clearly distinguish the difference between satisfaction and dissatisfaction with the two factors "driving force" and "hygiene factors '. Just to improve wages, and state security (hygiene factors) does not encourage the employees. It just makes people less satisfied with their work and it will not help increase yield. To increase output, managers need to give positive feedback to employees and encourage them to do the best possible. This suggests that employees are recognized for their work they do, thereby increasing their motivation.images9.jpg
'McDonalds' company apply the three components of the system dynamics: financial incentives, not financial incentives, and social policy. All three factors are described in the theoretical hierarchy of motivation, Maslow's needs. This hierarchy has five levels of human needs and a degree must be completed to move to the next level of the system. hierarchy starts with physiological level which is basically the normal demand. Once this is completed the next level is safety, where the staff must feel safe and personal finance to move to the next level of needs, but social needs ", following that self-esteem and then self-realization. The study of ' McDonalds' company, its strategy and showed that only one structure simultaneously the needs of employees will increase the performance of staff. It is not necessary to perform all of the needs of all levels. In fact the staff have a set of needs in each particular moment.
2. Recruitment and Selection:
McDonalds in recruitment process is decentralized. Every branch of McDonalds is to hire independent workers. Usually employees are hired at McDonalds in a form of heraldry. Besides the change of personnel in the McDonalds franchise was held for the recruitment of staff. A typical McDonald's restaurant can use around 60 people including management and staff on the floor.images1.jpg
With 500,000 employees serving more than 90,000 branches worldwide, McDonald's Restaurant Group is the world's largest employer and second largest in the United States, after Wal-Mart. Based on studies of the BCC-channel, fully 12.5 percent of American workers have received their first job from McDonald's. To improve the quality of staff, Richard Floersch, who participated in the McDonald's in 1993 as vice president of human resources of McDonald's Corporation, is determined to change the old system.
Recruitment is the first part of the process of filling a vacancy. It includes checking the position, considering the source of suitable candidates, making contact with the candidate attracts applications from them, hear a short interview and final Induction of candidates selected in the company's budget office.
In conditions of employment, give the shift of the needs of employees better compensation and benefits, especially health care, the first Floerch enforcement action is to upgrade the health care system employees worldwide. Cooperation with other corporations such as IBM, Ford, and GM, to bargain with insurance companies to offer a lower rate for employees. The new plan called "Affordable Healthcare Solutions" to attract more people to participate in the workforce and retain talent within the company. Floersch estimated that 30-40 percent of the chain operator plans to buy the box of McDonald's corporate health care for workers by the hour, and 75 percent of franchises are part of the supply coop coverage of medical management.
In addition to the plan aimed at existing employees, McDonald's refined its recruitment process for building "a pipeline of quality candidates," the report Floersch. McDonald's also created a questionnaire and crew management if potential candidates interested in working on the team and feel comfortable interacting with customers. McDonald's UK also pioneered information kiosks on the street, called 'iPlus Points, recruitment advertising.
Description of candidate positions and parameters underlying the job ad. When advertising jobs in writing to the department of human resources at McDonald's decided to feature in a location that can attract potential candidates. To recruit good candidates to review McDonald's knowledge, skills, qualifications and other personal characteristics required for a current position. All job descriptions are specified in advance and the efforts of organizations that are targeted to the choice of suitable candidates. Hence the opportunity for a highly effective recruiting more significant.
Framework of job advertisements include a number of steps such as introducing the purpose and organization of its activities in the short form of reference; provide full information employment; outlines specific skills , knowledge, abilities and personal characteristics of people with jobs must have; stating the terms and conditions of employment, specifying how and where job applications must be submitted.
When selecting staff, employers will decide whether you should choose to serve their company or not is based on factors: qualifications, knowledge, experience and attitude. The third factor, the attitude is the prerequisites for employers to select candidates. Because knowledge can be trained, more experienced guide but not sincere attitude, dishonesty will work hard to engage with the business.images5.jpg
To be part of the organization's environment, there are two ways to apply that are apply online on the website of McDonald's or go personally to the company and hand in a CV. When applying online for a job applicant must have a registered account to make a number of steps such as personal information, education, qualifications, history, employment, availability, references and more information. If the result of a positive form, applicants will be invited by the employer for an interview with the manager. In the same time the candidate's references are checked at the source as the previous employer .Then, the interviewer will ask some questions about the candidates' personality and assume some situations, that employees can face with that job, so McDonald's found out a bit more about the candidate.
As a final level of the process of selecting candidates has settled a reality check online about food safety. If you pass online tests, applicants are invited to sign the contract owner and are told when to start working.
3. Company Background and Competitors Analysis :
3.1 Company Background:
McDonald's story started about 50 years ago in San Bernadio, California. Ray Kroc was a salesman, specializing in providing "milkshake - milk shake before drinking and food mix" for a food store to serve customers and drive through the two brothers Dick and Mac McDonald. Kroc estimated that the store is sure to sell over 2,000 boxes every month and since then milkshake, Kroc curious to know more why the business of the two McDonald brothers prospered so again. He visited the shop "quick service" and extremely amazed by the speed here Hamburger serving: 15 seconds for a 15 cent hamburger with potatoes and milk shakes. Kroc saw growth potential of the business and decided to participate. McDonald brothers agreed with the suggestions of the Kroc bought the copyright of "fast food shops." And April 15, 1955, Kroc opened McDonald's fast food for the first time in Des Plaines, a suburb north of Chicago. With the fast pace of development, the system stores sell McDonald's hamburgers over 100 million units within the first 3 years and 100 McDonald's first opened four years later, in 1959. By 1961, Kroc paid 2.7 million dollars to buy all of the rights from the McDonald brothers in 1963 and to sell a billion hamburgers a second was broadcast live on television advertising in rush hours. McDonald's not only popular in America but also quickly gained success in international markets such as Canada, Japan, Australia and Germany. Today, there are about 1.5 million people work for McDonald's worldwide. McDonald's is just beginning an American phenomenon but now it has become a truly international brand.
3.2 Competitors Analysis :
KFC and Bugger King consider are two main competitors generally identified with McDonalds. They have different strength on different market segment such as KFC is the leader company that provide fried chicken and it has a very long history in the fast food provider. KFC has the secret recipe of 11 herbs and spices to made it become the most famous in fried chicken. As for Burger King they have their own recipe for varieties type of burgers adopt any customer's taste. images8.jpg
The Burger King company is considered like the world's largest burger restaurant chain They have some strength points such as created a good website and at the Burger King restaurant also sell video game with purchase of a value meal, while the games are now unavailable in store, is still selling the game through its online store. But like the other, Bugger King also have some weaknesses like they sell almost about the burger, customer have no much choice for choosing their foods. While people are more concerning to healthy and nutrition food, but the first image of Burger King give to customer is junk food. This image of burger is unhealthy food.
As part of KFC policy employees undergo several trainings at different levels before they get promotion . In the same way , the general managers they employ on their branches must have acquired appropriate training and experience from the company . Likewise , all franchisers as part of the agreement have to undertake courses at Yum ! University to obtain familiarity with the culture of the Kentucky. In this way, both emigrants and immigrants will have the opportunity to incorporate the culture of KFC and their own culture to suit to the taste of their clientele. The training employed for both franchise and non-franchise managers are on the same basis that everyone is required to attend trainings held at the company 's headquarter at Louisville. Likewise , these front line people will take the responsibility in providing trainings for their employees using training manuals and product guides. In that way , the top management is assured that the KFC culture penetrates another culture effectively.
Innovation and creativity play an extremely important role in the growth of the McDonald's brand. The company has invested huge in technology and understanding of customer needs. The biggest breakthrough is the McDonald's restaurant opened in 1975 in Sierra Vista that customers not to buy food from a car going down. The idea of the demand comes from solving problems in the sales area, where at a nearby military base does not allow soldiers to wear uniforms off. And this idea was immediately successful. Today, the business of McDonald's because the idea on more than half of their business. McDonald's to serve customers with the best quality food. The raw materials for food processing are ordered from suppliers in a long time. Food is prepared by high and consistent standard. The McDonald's menu is always being reviewed and improved to make sure that satisfies the expectations of customers. In the menu of McDonald's restaurants in the U.S. even more beer, chicken, fish, salads and vegetarian dishes, plus a variety of desserts, hot and cold drinks with different flavors. images3.jpg
Right from the first day, McDonald's has recognized the importance of "HRM" in the process of branding. Like Ray Kroc said, "There is a close second to the fundamental role of our success, like a hamburger. And things that HRM is a feature of McDonald's. It's bigger than any man or any products bearing the name McDonald's". HRM is certainly not the only cause to success but it cannot be separated.
According the year 2009, the global economic was affected by economic crises. But for fast food industry, economic crises is a opportunity because fast food is such a integral part of many people's diets that they will continue purchasing it no matter what. Others who usually don't buy it will turn to fast food as a kind of comfort food in uncertain time. In order to get out of deficit, McDonald's company have remake their marketing strategy to suit with the economic. This report was showed how McDonald's company developed their HRM issue and applied it to business. McDonald's to serve customers with the best quality food. The raw materials for food processing are ordered from suppliers in a long time. Food is prepared by high and consistent standard. The McDonald's menu is always being reviewed and improved to make sure that satisfies the expectations of customers.
In the menu of McDonald's restaurants in the U.S. even more beer, chicken, fish, salads and vegetarian dishes, plus a variety of desserts, hot and cold drinks with different flavors.
McDonald's is fast food outlets to serve the public first to list all ingredients of food and analysis of the nutritional value in detail all of their products. In 2000, McDonald's released a number of products as innovative McSalad, N'Yogurt Shaker and Fruit Parfaits (yogurt ice cream fruit), easy to eat more during the busy time. McDonald's company continues to reaffirm its position as a top fast food company in innovations.