Human Resource Managemant/Mcdonalds Corporation
McDonald’s Corporation
Overview
To determine if McDonald’s has competition when it comes to having a business that is profitable and where diversity and career opportunities is what help put McDonald’s way ahead of the competition.
The article McDonald’s Corporation describes McDonald’s as the world’s largest restaurant chain and has been in business since 1948 where Dick and Mac McDonald opened up McDonald’s Bar-B-Que restaurant in San Bernardino, California. Ray Kroc, the man who made McDonald’s a household name became a franchising agent for the McDonald’s brothers in 1954 and opened his first McDonald’s in Illinois in 1955. The brothers sold the company to Ray Kroc in 1961 for 2.7 million. Revenues reached a record high of 22.8 billion in 2007. According to its website, McDonald’s is the leading global foodservice retailer with more than 32,000 local restaurants serving more than 60 million people in 117 countries each day. More than 75% of McDonald's restaurants worldwide are owned and operated by independent local men and women. I will examine if McDonald’s is truly a company that has a strong HR methods in order to stay on top.
1) What should McDonald’s do to further reduce turnover and improve its HR management?
According to the article, McDonald’s turnovers have decreased from 170% to 130-135%. They have developed hiring tools that reduce subjectivity in the selection process and weed out poor prospects with a questionnaire that the applicant fills out that correlates well between high scores and future success. They estimate that they receive over 1 million applications a year. According to the textbook Human Resource Management by Anthony, Kacmar, and Perrewe, companies like McDonald’s should us the incremental approach when faced with a high turnover rate. The approach include increasing wages by $1 per hour, implementing career tracks and promotions for all employees, increasing benefit packages, and allowing for a more flexible
Overview
To determine if McDonald’s has competition when it comes to having a business that is profitable and where diversity and career opportunities is what help put McDonald’s way ahead of the competition.
The article McDonald’s Corporation describes McDonald’s as the world’s largest restaurant chain and has been in business since 1948 where Dick and Mac McDonald opened up McDonald’s Bar-B-Que restaurant in San Bernardino, California. Ray Kroc, the man who made McDonald’s a household name became a franchising agent for the McDonald’s brothers in 1954 and opened his first McDonald’s in Illinois in 1955. The brothers sold the company to Ray Kroc in 1961 for 2.7 million. Revenues reached a record high of 22.8 billion in 2007. According to its website, McDonald’s is the leading global foodservice retailer with more than 32,000 local restaurants serving more than 60 million people in 117 countries each day. More than 75% of McDonald's restaurants worldwide are owned and operated by independent local men and women. I will examine if McDonald’s is truly a company that has a strong HR methods in order to stay on top.
1) What should McDonald’s do to further reduce turnover and improve its HR management?
According to the article, McDonald’s turnovers have decreased from 170% to 130-135%. They have developed hiring tools that reduce subjectivity in the selection process and weed out poor prospects with a questionnaire that the applicant fills out that correlates well between high scores and future success. They estimate that they receive over 1 million applications a year. According to the textbook Human Resource Management by Anthony, Kacmar, and Perrewe, companies like McDonald’s should us the incremental approach when faced with a high turnover rate. The approach include increasing wages by $1 per hour, implementing career tracks and promotions for all employees, increasing benefit packages, and allowing for a more flexible
Cited: Anthony, W., Kacmar, K., & Perrewe, P. (2010) Human Resource Management: A Strategic Approach. Mason: Cengage Learning. McDonald’s (2011) Values in Practice Report Retrieved from http://www.aboutmcdonalds.com/mcd/csr/report/employment Your Guide to Indian Food (2011). Retrieved from http://www.food-india.com How McDonald’s Work. Retrieved from http://money.howstuffworks.com/mcdonalds.htm/printable Bahaudin, M.G., Patel, B. (2007). Nova Southeastern University: McDonald’s Success Strategy and Global Expansion through Customer and Brand Loyalty. Retrieved from http://clutinstitution-onlinejournals.com/PDFs/115.pdf