McDonalds
Name
[final assessment of learning in the Strategic Human Resource Management]
Description of the organization:
McDonalds is a global foodservice industry, which began its operations in 1940’s. The concept of McDonalds was introduced by Brother Dick and Maurice McDonald, by opening a ‘hamburger stall’ at San Bernardino, California in 1937.
Mission: ‘McDonald’s aim is to be the leader in the Quick Service Restaurant (QSR) industry by maximizing Profits and through our Principles of QSC & V (Quality, Service, and Value) consistent with the needs of our Customer, Employees and Community.’
The major domestic growth of McDonald’s in USA began in 1960’s, as there was a demand of cheap takeaway food. Today the Company operates in more than 117 countries worldwide, serving more than 50 million customers per day. The company’s retail outlets are either owned by the company or by franchisees. McDonald’s are structured with functional lines. In which every department is responsible for their own functions. McDonald structured in five different major areas: Finance, Marketing, Human Resources, Operations Development, etc.
Providing best quality and hygienic food at reasonable price is the competitive advantage of McDonald. Proper use of external opportunities with a focus on services, innovation and extension in menus are additions in its competitiveness. Pleasant, healthy and happy internal environment of restaurant attract more and provide a competitive advantage. McDonald is the world’s largest consumer of beef, chicken and potatoes, McDonalds always had been critics by world environmentalist for polluting environment but McDonalds is very well aware of its responsibility towards environment.
Competition in food service is increasing day by day therefore McDonald may face high competition in coming two or three years. In comparison with its competitors McDonald does not have diversified product line. There is no any breakfast in the menu of McDonalds. Due to these McDonald can loss its market share in coming future.
Description of the organization’s strategic planning process:
In any organization human resource play very important role in the development of an organization. HRM Function is very essential for any organization’s growth. Providing a competitive advantage by recruiting skilled employees, new procedures, new policies, new solutions etc are the main functions of HRM.
In McDonald human resource has an important role but to achieve competitive advantage and to be stable as a good brand McDonald applying and work very efficiently on five P’s such as People, products, place, price and promotion. They have implemented geographic strategic plans also which was main reason of its success. Their main focus was to provide quality and hygienic foods. In US McDonald focus on breakfast, chicken, beverages and convenience. Southern Style Chicken Biscuit, Southern Style Chicken Sandwich etc were launched by McDonald. McDonald’s started a tiered menu approach in Europe. In Middle East, Asia and Africa McDonald develop their geographical strategic plans. In India they were established by promoting vegetarian fast foods. Extension and value to their core menu was the main focus of McDonald’s strategic plan. Company is able to establish themselves globally because of their overall strategic and geographical strategic plan.
Since company is in fast food industry where they have focus of quality of food, service and price, Human resource has less influence in their strategic planning. In recruiting and providing staff force human resource help McDonald a lot. The restaurant service is formed by the company in better way because of efficient work force and skilled people. Due to better human resource management company is able to manage their servicing facility. That is why we cannot deny that Human resource of McDonald has no participation in the strategic planning process. Innovation, change, new promotional activities etc are the functions of human resource.
Description of HRM strategic planning process:
McDonald has also human resource management department and they perform their functions and responsibilities in a very well manner which resulted into a high financial result for the company. In McDonald employees are hourly paid (from September 2007). Here 54.86 % employees are male and 45.14 % employees are female. McDonald provide safe, sustainable, enjoyable, healthy and clean working environment. They work as a team and regard every employee. In 2006 & 2007, McDonald’s UK was listed in ‘The Times’ for Top 50 Places Where Women Want to Work. McDonald’s is a Gold Card member of the Employers’ Forum on Disability (EFD). The Company use ‘Two Tick’ Symbol which is approved by Employment Service.
Main functions of human resource management in strategic planning are:
Providing training and development (on and off the floor) to all its employees from the first day of the employee.
Extending and innovating new ideas for changing their food, quality and services.
Under crew Development Programmed (CDP), McDonald provides standard training system.
McDonald’s development management give direct route into restaurant management by providing Shift Management, Systems Management, Personal and Soft Skills Training management etc.
As McDonald uses its promotional activity at certain time interval with a new motto and attraction. These changes in promotional activities are the HRM function.
IT and online learning is very much essential for employees due to online order.
In 1989 Part-time Management Scheme was introduced by McDonald for part-time employment. It was another function of HRM to provide employees at less salary.
Analysis and Identification of Issues:
McDonald’s mission and objective was to become leader in fast food industry by maximizing Profits and through our Principles of Q S & V (Quality, Service, and Value) by satisfying Customers. HRM of McDonald work very hard to meet the organization with its mission and objectives such as:
Strong brand name image reputation – McDonalds is a brand known to the globe, its slogan I’m Lovin it, and its brand statue is recognized by the customers all over the world.
Market Leader – McDonalds is the market leader in burger segment in fast food industry. It captures maximum market share and holds the first position in USA, Malaysia, Europe and Asian nations.
Strong promotional activities: McDonalds makes a strong move in promotional activities, its strong advertisement, focusing on children.
Product innovation skills – McDonalds have made a move in innovating its products, it continuously works on redesigning its existing products to match up with the tastes and preferences of its customers. Introduction of Salsa wraps in India is one of the product innovations that McDonalds has adopted.
McDonald face some issue as well along with the successful work their HRM.
Legal proceedings – There are several plaintiffs that have been charged against McDonalds in case of obesity and misrepresentation of its products to its customers.
Excess External financing – McDonalds relies heavily on external financing which is one of the biggest financial weaknesses of the company. As per 2009, McDonalds holds 72% of debts as compared to its assets. They also invest a high amount on their employees.
Weak R&D – McDonalds lacks focus on its research and development skills.
Unhealthy food – Many times McDonald’s is linked with serious related to diseases such as heart disease, cancer, obesity and diabetes.
As we can see that company is doing well which is possible due to the smart work done by Human Resource of the company so they did not need any changes or redirection but they need to focus on work force that is increasing regularly. As a result they have to face high expenses. They should higher multitasking employees and secondly they must consider the legal and environmental issue associated with the company. Due to this company is losing their image (weakness) and if they will work on this, it will give a good impact in the eyes of consumer and they will be counted as a socially responsible company.
Recommendations for change:
Primary recommendations:
McDonald must focus to limit their employees because they have to face a high expense or investment on their employees. They should hire skill employees so that they need not to investment more on them in respect to training and development.
Organizational culture of McDonald seems good but they need to focus on the quality of their food as well as price. Since there are various competitors in the market so it is very essential for the company to focus on these factors.
McDonalds has always been a market leader in the fast food industry in the world. With its different concepts and focus on cleanliness and speed, the company has been successfully made its place in the global market. From 2000, McDonalds has been improving its position and performance. Apart from the primary recommendation, they need to consider some important thing related to their strategy. They should focus on quality and hygiene of the food products served. They should increase some variety of food products because in comparison to its competitors they have less names in their menu. They can concentrate on niche marketing to target high profile customers. Company should also focus on their financial performance because it seems like fluctuating.
Reference:
Company cite, Updated, retrieve from
HYPERLINK “http://www.mcdonalds.com/us/en/home.html”http://www.mcdonalds.com/us/en/home.html
Corporate level Strategy retrieved on 19th July’ 2010, retrieve from HYPERLINK “http://www.nowpublic.com/style/28-corporate-level-strategy”http://www.nowpublic.com/style/28-corporate-level-strategy
CSR Company International, Leading global CSR Consultancy ISO 26000-CSR Strategy-Measurement, (N.D.) retrieve from
HYPERLINK “http://www.blurtit.com/q355891.html”http://www.blurtit.com/q355891.html
By Erica and Michelle, (N.D.), Human Resource Management in McDonald’s, Retrieve from
HYPERLINK “http://jpkc.szpt.edu.cn/english/article/Human%20Resource%20Management.htm”http://jpkc.szpt.edu.cn/english/article/Human%20Resource%20Management.htm
THE LONDON GREENPEACE GROUP, (N.D.) What’s Wrong with McDonald’s, Retrieve from
HYPERLINK “http://www.mcspotlight.org/case/pretrial/factsheet.html”http://www.mcspotlight.org/case/pretrial/factsheet.html
Spotlight, the Issue introduction, (Updated), retrieve from
HYPERLINK “http://www.mcspotlight.org/issues/intro.html”http://www.mcspotlight.org/issues/intro.html
HYPERLINK “http://www.managementparadise.com/forums/human-resources-management-h-r/214495-organisational-structure-mcdonald-s.html”http://www.managementparadise.com/forums/human-resources-management-h-r/214495-organisational-structure-mcdonald-s.html