Mcdonald Case Study
The McDonald’s Study Case
HRM 532
July 25th, 2012
Abstract
McDonalds declared its first profit lost in the history of its outstanding performance in the fourth quarter of 2002. This led the company to investigate the key components which caused this to happen. Upon review the company realized there was a need to improve its Talent Management to align with the company’s business goals and strategies. This process was needed to achieve long term growth and success for the company. This case study gives an overview of the initiatives that McDonalds implemented to strengthen the company. It discusses how and why the changes were made; how they were implemented; and the impact it had on the business future success.
Outline the Talent Management program that led to success for the company. McDonald’s first step to achieve success was to redesign their performance development system for all their positions within the company. The current system based performance against annual objectives without evaluating how these results were achieved. This caused a fallacious measure of the employees success all having excellent or above average reviews while the company was becoming insolvent. Performance drivers were introduced to determine how their accomplishments were achieved and to also change the culture of “entitlement” that McDonald’s organization was facing. It introduced the four point rating and a new compensation incentive. A revised assessment of the candidates’ potential was also introduced that were based on specific abilities which then allowed no more than 25% of their managers in a year to be eligible to be “ready now” or “ready for the future.” This new design was introduced into all the countries allowing each country to make changes to fit their market as long as these changes stayed within the “plan to win” framework (Carter, 2010). McDonalds then introduced a stringent and
HRM 532
July 25th, 2012
Abstract
McDonalds declared its first profit lost in the history of its outstanding performance in the fourth quarter of 2002. This led the company to investigate the key components which caused this to happen. Upon review the company realized there was a need to improve its Talent Management to align with the company’s business goals and strategies. This process was needed to achieve long term growth and success for the company. This case study gives an overview of the initiatives that McDonalds implemented to strengthen the company. It discusses how and why the changes were made; how they were implemented; and the impact it had on the business future success.
Outline the Talent Management program that led to success for the company. McDonald’s first step to achieve success was to redesign their performance development system for all their positions within the company. The current system based performance against annual objectives without evaluating how these results were achieved. This caused a fallacious measure of the employees success all having excellent or above average reviews while the company was becoming insolvent. Performance drivers were introduced to determine how their accomplishments were achieved and to also change the culture of “entitlement” that McDonald’s organization was facing. It introduced the four point rating and a new compensation incentive. A revised assessment of the candidates’ potential was also introduced that were based on specific abilities which then allowed no more than 25% of their managers in a year to be eligible to be “ready now” or “ready for the future.” This new design was introduced into all the countries allowing each country to make changes to fit their market as long as these changes stayed within the “plan to win” framework (Carter, 2010). McDonalds then introduced a stringent and
References: Hartly, D. (2011). Serving Up Creative Talent Strategies. Retrieved from talentmgnt.com. Carter, M. G. (2010). Best Practices in Talent Management. San Francisco: pfeiffer. Clem, D. (2011). Lansing Business Monthly Review. Retrieved from lansingbusinessmonthly.com. (Council for Adult and Experiential Learning, 2009).Retrieved from Compete.org James Intagliata, N. K. (2001). Enhancing the Talent Management System to Support McDonald 's Corporation 's Global Growth. Retrieved from alexcelgroup.com. Thinking Made Easy. (2010). Retrieved from iveythesis.typepad.com. Rob Silzer, B. D. (2010). Stratergy- Driven Talent Management. Jssey-Bass.