McDonalds Managing Performance
Fundamentals of Human Resource Management
21730 Westport Avenue
Euclid, Ohio 44123
Instructor: Sally Buffkin
People are the most important resource of an organization and they ensure the interaction of financial, industrial, and other resources so that the organization can function. Since 2001 McDonald’s has introduced a series of significant changes to its HR systems. This change is to strengthen the organization’s capability to develop the quantity and quality of leadership talent needed to support its continued global growth and vitality. What is performance management?
1. The processes through which managers ensure that employee’ activities and outputs are matching with the organizations goal (Kramar, 2010). 2. A continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization (Aguinis, 2007).
McDonalds Managing Performance
Nowadays experienced managers realize that the financial reward cannot continue to be the only kind of an employee encouragement. The employees' needs should be viewed as an entity that leads to the search of non-financial motives. There exist many non-financial motives that are connected with the employee's satisfaction of needs, such as his/her recognition, participation in the decision-making, self-fulfillment, personal growth and others. The practice shows that the full use of human resources of an organization is one of the most significant advantages, which allow companies to occupy the leading positions in the world market. The 'McDonalds' company flourishes due to the logical integration of the staff into the problem solving. McDonalds adheres to the principle: ‘The result is done by a man”. ‘McDonalds” examines its employees as the primary source of progress in the field of quality and productivity. This organization has based its success on the motivation theories having altered only some aspects of them. ‘McDonalds’ adheres to four simple principles, which give the possibility to increase the performance of its employees: 1. The organization must elaborate different systems of motivation for every department. 2. The personnel must have clear and attainable aims.
3. The aims must change; managers should have one aim for half of a year. 4. The rise of salary amount must be sensible for an employee. In regards to the four simple principles, for clear and attainable aims, it is better to have one aim per person. For aims to change, (for example) at first a manager examines the number of clients, then he/she examines the number of returning clients; and then he/she should analyze the increase in business sales. This method gives the possibility to find new abilities of employees and to check new methods of work. With respect to the rise of salary amount being sensible for an employee, ‘McDonalds’ organization applies three components of the motivation system: financial encouragement, non-financial encouragement, and social policy. All three factors are described in Maslow’s motivation theory. McDonald’s strategy to develop its global workforce is designed to be aligned with and support the execution of its over-arching strategic business goal, which is “to become everyone’s favorite place and way to eat”. McDonald’s has an overall “Plan to Win” that provides the global business with a common framework for developing tactics to reach this goal. The framework includes five key elements: 1) People, 2) Place, 3) Product, 4) Promotion, and 5) Price. Informal feedback is frequently administered in organizations on a daily basis between staff (Farr, 2012). It promotes relationship building within the organization, all a part of a constructed performance management system (Shields, 2007). Informal...
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