Performance and Reward Issues for Mcdonalds

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CONTENTS
1.0Introduction…………………………………………………………………………………………………..…….pg.3 2.0Organisational Analysis and Issues Identified……………………………………………………….pg.3 3.0Recommendations……………………………………………………………………………………………….pg.5 4.0Action Planning…………………………………………………………………………………………………...pg.5 4.1Action Planning for owner-operators, for management………………………..…pg.6 4.2Action Planning for staff…………………………………………………………………….…….pg.7 5.0Informal Feedback…………………………………………………………………………………………..…..pg.8 5.1How Informal feedback will be provided………………………………………………....pg.8 5.2Informal Feedback resolving Issues Identified……………………………………..…..pg.9 6.0Monitoring…………………………………………………………………………………………………….……pg. 9

6.1 Monitoring resolving Issues Identified…………………………………………………...pg.10 7.0 Formal Performance Reviews conducted Quarterly………………………………………..…pg.11 8.0 Learning and Development………………………………………………………………………………..pg.11

8.1 Off the Job Training………………………………………………………………………………..pg.12
8.2 On the job Training………………………………………………………………………………..pg.12 9.0 Rewards Package……………………………………………………………………………….………………pg.13 10.0 Conclusion…………………………………………………………………………..…………………………..pg.14 11.0 Appendix A………………………………………………………………………………………………………pg.16 12.0 References………………………………………………………………………………………………………pg.17

1.0INTRODUCTION
The aim of this report is to suggest recommendations that will improve the McDonalds performance system. This report will briefly summarise an organisational analysis that includes McDonald’s business strategy and culture. The report will also layout the issues identified at the Townsville restaurant, with six subsequent recommendations to address those issues 1.0ORGANISATIONAL ANALYSIS AND ISSUES IDENTIFIED

Business Strategy
McDonalds utilize Porters strategies in order to acquire a high standard of product and service quality as well as speed and efficiency. Porter’s Generic Business Strategies
(a)Cost-Leadership Strategy: McDonalds adopts this strategy as they supply fast food at a lower price than their competitors such as KFC, to gain market share (Shields, 2007, p.117). Casual staff are employed in order to perform narrowly constructed jobs, in order to stimulate efficient production (Schuler & Jackson, 1999, p.168).

(b)Differentiation Strategy: McDonalds achieves this strategy as they distinguish their products from competitors by supplying consumers with a more varied menu, including healthier items. (Shields, 2007, p.107). Culture

McDonalds has ‘traditional culture’ with respect to the running of the organisation as a whole, however they have also adopted a ‘high-involvement’ culture to manage employees.

(a)Traditional Culture: A ‘traditional’ culture places importance on vertical communications, top-down decision-making and detailed division of labour (Shields, 2007, p.90). A traditional culture ensures that training, tasks and actions work habitually in order to provide fast food and value to consumers.

(b)High-Involvement Culture: A ‘high-involvement’ culture is against hierarchy, supports open communication and emphasizes a transactional psychological contract (Shields, 2007, p.90). McDonalds controls its workforce in restaurants by encouraging open communication through team-work on a daily-basis. Issues that were identified are summarized in the table below;

McDonald’s Case: Performance Management Issues
IssuesEvidence from Townsville store
Issue 1: Low staff motivation
High performing staff are losing motivation because they aren’t getting any awards, incentive/recognition and are getting the same as under-performing team mates. • Crewmembers reported to be “stuffing around and “getting away with it”. •Quality staff are tired of working more in order to cover for team mates who are continuously late for work or don’t respond to customers in a timely manner. •Crewmembers have reported that mostly negative feedback is received and that any other feedback is focused on critiquing the staff without rewarding or...
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