McDonalds Human Resources: What You Need to Know
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The position of human resources in mcdonalds structure, mcdonalds human resources philosophy , learning and development programs, recruitment and selection, application review, video or phone interviews, onsite visit, pre-employment screening, notification, competitive pay and benefits, resources to get the job done.
In 2021, McDonalds was recognized as the world's largest fast-food chain. Statistically, it served 69 million customers in more than 100 countries . The human resources division at McDonalds played a critical role in that success.
Commentators attribute the success of McDonalds to several factors . These include its innovative business strategy, focus on client satisfaction, and capacity for growth. However, one of the most critical components of McDonalds success is its workforce; for this reason, it is necessary to examine McDonalds human resources practices .
A Glassdoor review found a 3.5-star overall rating on a scale of 5 for McDonalds human resources practices. Additionally, 6 in 10 employees said they would suggest McDonalds as a place to work. These numbers imply that McDonalds workers are satisfied with their jobs. Perhaps one of the main factors contributing to McDonalds great success.
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McDonalds human resources plans, implements, and develops strategies for hiring, training , assessing, and rewarding employees. The primary objective is to provide the company with a competitive edge.
McDonalds human resources is one of the most recognized in its industry. Its responsibility is to ensure that the right people are in the right places with the right abilities. It also involves connecting the right persons with the correct positions at the right time and cost.
Global McDonald's operations are developed and aligned with its plan-to-win operational strategy. McDonalds human resources also function to feed into this overall strategy. The core tenet of this strategy is the requirement to deliver an outstanding client experience.
The plan-to-win strategy focuses on products, people, place, price, and promotion ( 5Ps ). With the combination of these 5Ps, McDonalds believes that it can achieve its mission of continuous improvement of customer experience. McDonald's human resource strategy comprises preparation, selection, education, performance, remuneration, and staff maintenance.
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The corporate strategy of McDonalds aligns with its human resources management. This aligns with the organization's adaptable and dynamic structure, especially the role of human resources within the McDonalds structure. McDonalds organizational structure is functional and focuses on different business components and functions as the basis for determining the relationships and reporting lines between these distinct components.
A snippet from McDonald's executive team organizational chart , which shows the role of human resources, is shown below.
Heidi Capozzi is the Executive Vice President and Global Chief People Officer of McDonalds, responsible for managing the company's global human resources operations. According to a recent analysis of the HR reporting structure, 13% of HR directors at different organizations report directly to the CEO . This is the case for McDonalds human resources. The findings probably demonstrate how much employers value human resources in today's fast-paced workplace.
At McDonalds, human resources practices are given more prominence and significance. Studies have indicated that when HR reports directly to the CEO, the CEO values HR's contribution to the firm and sees it as a strategic function. As a result, HR might become more prominent and essential within the organization.
While McDonald's HR practices emphasize a structured approach with direct reporting to the CEO, Burger King’s HR practices offer another perspective on managing human resources in the fast-food industry, providing valuable insights into how different industry leaders approach workforce management
Related: Human Resources Outsourcing: A Guide for HR Professionals
‘We're not just a hamburger company serving people; we're a people company serving hamburgers.’- McDonalds .
McDonald’s human resources philosophy promotes a positive work environment, prioritizes employee satisfaction, and offers competitive wages and benefits . The company’s approach to human resources has been vital in maintaining a satisfied workforce that delivers both quality and quantity of work. McDonalds human resources vision is to be the best employer in each community around the world. Being the best means opportunities, training development , satisfaction, rewards, and recognition.
The company has constantly reminded its employees that it is committed to their well-being. A common people promise at McDonalds is that - To all our present and future employees, we'd like you to know that we are committed. “We Value You, Your Growth, and Your Contributions."
To address internal and external variables, HRM practitioners at McDonald's have used a variety of solutions at both the operational and strategic levels. These include recruitment and onboarding techniques , employee engagement programs, e-enabling HR processes, ethical sourcing policies, and global HR strategies.
The company's HR technology trends include staff involvement and connection through mobile applications and social media platforms and training and assessment using digital technologies like VR and analytics.
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‘Teach skills and values that last for a lifetime.’
McDonald's provides a range of training and development opportunities. These aim to improve staff members' abilities and expertise and support their professional development and the business's success. McDonald’s human resources uses a blended learning approach to apply training programs. These methods include the following:
McTalent Development Program is a fast-track development program for externally hired talents to join the Store Management Team. It provides tailor-made training for participants to advance to restaurant general managers and mid-managers rapidly.
The Star Competition is an iconic employee event with training, learning, and fun. It is a platform for participants to show their consistent training results and team spirit with rewards and recognition for top performers.
Classroom training is an interactive event with clear learning objectives. The training is held in or out of the restaurant and guided by professional trainers for effective knowledge transfer. Activities include webinar broadcast, capstone course, restaurant experience , case study, visits and tours, online assessment, etc.
On-the-job coaching and digital learning . The approach enables participants to begin their self-learning journey and work independently to acquire critical operational knowledge and standards while providing the participant with the chance to work shoulder-to-shoulder with a coach. This builds practical restaurant skills and demonstrates how the concepts work in a working environment.
Hamburger University is a critical component of McDonalds training and development program. It instructs high-potential restaurant managers, mid-managers, and owner-operators in restaurant management. Hamburger University students take courses about restaurant operations, leadership skills , customer service, operations, and procedures. The skills learned from the university are a lifetime gain for employees.
The foundation of the McDonald’s training system is providing training when and where it is needed. Team members at McDonald's can become proficient and focused on the particular procedures and policies of the system through practical training. A portion of the staff will continue to work at the restaurant as vital parts of the team, while others may choose to go into management. Whether in an entry-level position or throughout a career, McDonald's training offers life skills that may be applied to various scenarios.
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McDonalds follows a specific recruitment process for most of its locations. However, some places might have their own unique hiring process. Generally, the recruitment and selection at McDonalds follows the process explained in this section, adapted from the McDonalds website .
For the majority of positions, basic eligibility requirements apply. These include being at least 15 years old, having the ability to multitask, excellent communication skills, attentiveness, and a collaborative attitude. But, depending on the position, specific requirements could change; therefore, reading and comprehending the job description is critical before applying. Usually taking an hour or so, the application procedure requires applicants to submit their availability, employment history, and contact information. A 'personality' test is also given to evaluate attributes necessary for the position.
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Once submitted, the applications undergo a review process by hiring managers . This assessment includes an examination of the answers to the personality test. Candidates whose qualifications and personalities align with the company's needs are then scheduled for an interview, either online, via phone, or in person.
Regardless of the interview format, meticulous preparation is crucial. Video interview tips are beneficial for those scheduled for online interviews. In contrast, phone interview preparation closely mirrors video interviews, with the main distinction being the absence of a webcam setup.
Candidates invited for in-person interviews should arrive punctually and well-prepared, bringing essential documents such as identification and social security cards, along with a resume. Though some documents may not be needed during the interview, their presence demonstrates organizational skills and quick thinking.
McDonald's conducts criminal and educational background checks and standard procedures for potential hires. Although pre-employment drug and alcohol testing is not routine, the company retains the right to administer them under specific circumstances, such as suspicion of impairment, leading to potential disciplinary action.
McDonalds gives job offers to those who complete the interview process and pre-employment screening. During the initial phone call, discussions about availability and scheduling an official reporting date occur. Depending on the candidate's experience level, the initial weeks may involve training.
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‘Pay Competitively’
To draw and keep talent across the board, McDonalds offers competitive pay that is appropriate for the role held by a Company employee. The company assesses competitive wage data and market trends to establish acceptable wage ranges and guarantee compliance with all relevant wage and hour legislation.
According to review aggregator Glassdoor , the robust benefits package at McDonald's includes insurance, health and wellness coverage, vacation and time off, and financial and retirement benefits. Overall, the pay and benefits were rated 3-star by US employees via Glassdoor.
Competitive - Pay opportunities are designed to attract, engage, and motivate personnel by matching the external worth of a position. McDonalds routinely assesses pay rates' competitiveness in comparison to peer organizations that match the company size, scale, performance requirements, and talent pool.
Non-Discriminatory - Company employees are compensated at a level commensurate with their role, responsibility, impact, location, experience, knowledge, skills and performance, irrespective of gender, race, ethnicity or any other similar protected personal characteristics. This is backed by the company’s Diversity, Equity, and Inclusion (DEI) policy .
The McDonalds compensation philosophy goes beyond mere payment. It is designed to ignite exceptional performance, celebrate achievements, and shape behaviours that embody company values. McDonalds believes in clear communication so that pay programs are transparently explained through regular updates and a focus on simplicity. This ensures that every employee understands the link between their efforts and rewards. Furthermore, the company operates with the utmost integrity, adhering to all relevant legal and regulatory guidelines to build trust and foster a responsible work environment.
‘Employees need fundamental resources to serve customers’
McDonald's empowers its employees to shine with the tools and support they need to excel. From well-equipped kitchens and training programs to flexible work schedules, McDonald’s human resources fosters a work environment prioritizing productivity and well-being. This recipe for success ensures happy employees and, ultimately, satisfied customers.
McDonald's human resources fuels crew success with ample resources: strategically staffed restaurants, well-equipped kitchens, comprehensive training, and flexible scheduling. This empowered workforce tackles every order confidently, crafting consistent meals and radiating positive vibes, ultimately resulting in satisfied customers and a thriving environment for all.
It can be concluded that McDonalds human resources has implemented several initiatives to improve the performance of the employees, the organizational culture, and the engagement of the employees with the organization. Drawing lessons from the McDonalds HR framework for improved organizational outcomes is crucial.
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Training Industry
Case study: how mcdonald’s integrates learning into the employee experience.
Striving to be the “best first job,” McDonald’s knows many of its employees are at the beginning of their career path. Some, still in high school, may not have the resources to attend college and are beginning to wonder, “What happens next?” Some may be working to finish high school or college to gain the skills and education requirements needed to take the next step in their careers. Still others may be looking to sharpen their English skills to communicate better with customers and open more doors in the future.
With an estimated 1.9 million employees dispersed across the globe, supporting employees’ unique personal and professional goals would call for an innovative, comprehensive, solution — which is why McDonald’s launched Archways to Opportunity ® in 2015.
The Archways to Opportunity program helps McDonald’s employees across the globe improve their English skills, earn a high school diploma, work toward a college degree, and create an education and career plan with the help of career advisors. With the recently launched Archways to Careers app, McDonald’s employees can now access many of these professional development opportunities — and new ones — at their fingertips. Rob Lauber, chief learning officer at McDonald’s, says the app helps employees “find and unlock” their passions, identify related career opportunities, and make a plan to achieve them.
Let’s examine how McDonald’s has integrated professional development into the employee experience to set its workforce up for success not only at the Golden Arches but in life.
Archways to Opportunity: A Brief Overview
Since its launch in 2015, Archways to Opportunity has :
- Awarded high school and college tuition assistance to over 35,000 employees, totaling over $90 million.
- Had over 750 employees graduate from its career online high school program and over 7,250 employees graduate from English Under the Arches (launched in 2007).
- Increased access to education for over 50,000 people through its various programs.
While these initiatives undoubtedly benefit employees, they’re also good for business. For example, McDonald’s believes English Under the Arches has helped retain employees. Through a blended learning approach, the initiative seeks to teach employees the “English skills that restaurant employees need most,” such as common words and phrases they will encounter on the job.
McDonald’s education benefits are another way it attracts and retain employees in an industry currently facing a major labor shortage . Its employees are eligible for tuition assistance after working at least 15 hours per week for 90 days. Crew workers are eligible to receive $2,500 per year, and managers are eligible to receive $3,000 per year.
As John Colborn, director of the Aspen Institute’s Skills for America’s Future initiative, explains , “When companies like McDonald’s provide these kinds of programs, they not only enhance life opportunities for their workers, they also gain a more engaged and talented workforce.”
With the benefits the Archways to Opportunity program has brought to both employees and the company, Lauber says it “made perfect sense” to take the next step in supporting employees’ professional growth: launching a career development app.
Archways to Careers: Vision, Strategy and Measurement
McDonald’s launched its career development app, Archways to Careers, to supplement the Archways to Opportunity program with “personalized, one-on-one” professional guidance, Lauber says. By providing learning on demand, the app also aims to help reduce common barriers (e.g. transportation, costs and scheduling conflicts) for employees looking to advance their careers.
Unlike an in-person course or workshop, Lauber says, an app proved the best way to “touch as many people as possible.” For busy restaurant workers, it’s critical that they can access everything from career coaching to English courses on the bus ride to work, between the breakfast and lunch rush, or in the comfort of their own home.
With help from an existing partner and a coaching company, the app took roughly 10 months to build. A key part of the process was seeking and implementing feedback on the app’s progress to ensure the finished product would meet employees’ needs and deliver the value it was expected to, Lauber says. As the app is largely targeted toward learners who are just entering the workforce, McDonald’s decided to “support employees more directly” through one-on-one career coaching sessions with objective, third-party career advisers, Lauber says. According to the press release , the credentialed advisors will help restaurant employees “chart a path to achieve the future job or career they desire.”
Employees can also view education requirements and salaries for roles and industries that, based on conversations with employees, McDonald’s found to be of high interest, such as health care, technology and finance.
Measurement
McDonald’s will measure the app’s success in several ways, including monitoring downloads and tracking user engagement with career advisers on the platform. Of course, Lauber says, “Like any app, it’s only as good as its current version … we’ll be looking for ways to improve the app going forward with future releases.”
A Learning Experience
The Archways to Careers app expands the reach of McDonald’s career development opportunities. However, employees also gain numerous opportunities for personal and professional development on the job, whether it’s learning to communicate with co-workers of different backgrounds or using soft skills like empathy to understand customers’ points of view and provide stellar customer service. Lauber says, “The experiences people in our restaurants get, just from working there, set [them] up with excellent life skills.”
McDonald’s goal is to engrain professional development into the employee experience. As a result, even if employees don’t take advantage of the career development opportunities they’re offered, they still benefit from a “host of development opportunities while working in the restaurant,” Lauber says. They are constantly learning new skills, and refining old ones, on the job.
Although McDonald’s employees are each unique in their career aspirations, backgrounds and personal interests, they have one thing in common: an employee experience shaped by learning and development.
- #Archyways to Opportunity
- #employee experience
- #learning application
- #mobile learning
- #professional development
- #training application
- #Workforce Development
Sarah Gallo
Sarah Gallo is the associate editor at Training Industry, Inc. and the co-host of The Business of Learning, the Training Industry podcast .
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Connect with us, elevating the global digital employee experience at mcdonald's.
In her presentation at HRD Summit 2018, Paula Coughlan, Chief People Strategy Officer at McDonald’s, shared what it was like creating a digital employee experience throughout the organisation. With the digital generation – Generation Z – now entering the workforce, they are expecting businesses to act and think of different ways when it comes to technology. So the team at McDonald’s has been thinking about how that digital journey starts.
- Author: Rosalind Hill
- Date published: Feb 28, 2018
- Digital Transformation
- Employee Engagement
McDonalds’ brand purpose is around creating ‘delicious feel-good moments’ that are easy for everyone to enjoy, in an environment that’s playful and fun. Coughlan explained that these feel-good moments are small moments of connection created between their people and customers; something that cannot be scripted or part of the process, but needs to be authentic and spontaneous. Through McDonalds’ digital for people, they aim to empower their employees to create these small moments of connection for customers. The digital strategy must be anchored in the strategy of the business and aligned with the needs and wants of customers and of the people.
In 2017, McDonald’s undertook a huge amount of customer research and found that in a normal McDonalds dining situation there are around 14 touch points – a human connection every couple of minutes. The quality of those interactions and how customers feel drive whether they will return. Front-of-house hospitality is more important than ever before and a fundamental part of the business strategy.
It takes many people to create those feel-good moments, so this creates challenges for the business. Not least that the business needs 20 million applicants every year globally to fuel the business; different types of roles and people to deal with customers, make decisions, and solve issues for the customer. Attracting the right talent is therefore a priority, as well as creating a fabulous experience so that people want to stay.
This reflects a significant cultural shift that the HR team at McDonald’s has been making in recent years, and is a primary driver of its success.
Community-driven
Ninety-two percent of McDonald’s restaurants are owned and run by franchisees; local people running restaurants in their own communities. This creates a dynamic of a multinational business and collection of small- to medium-sized businesses. As a result, people strategies need to be executed across those businesses and drawn from insights from customers and people. They need to:
- Know they’re working with colleagues who care about customers.
- Have the freedom to work around their lives.
- Be equipped and skilled to have the confidence to go in front of a customer.
- Be placed and positioned to shine and make the best use of their talents.
- Be recognised and appreciated for creating those feel-good moments.
- Be trusted to do the right thing for the customer at that moment.
With everything going back to the customer, the HR team at McDonald’s has been able to set out a clear vision for digital linked to the business strategy, and to help people create feel-good moments for every customer amplified by digital interactions across social media, the app and through video content.
When the team assessed the digital platforms at the beginning of its journey, they found they were asking leaders to access hundreds of websites. Rather than create something new, however, they found something that already worked and built out from it. The Intranet was being used in nearly every restaurant in the franchise model, but was becoming outpaced, and it was difficult to keep pace with external changes. However, it was a much-loved brand so they repurposed it as a portal for their digital tools and for people to access the tools they needed.
Understanding what the people wanted and needed from the digital experience has been critical at McDonald’s. They wanted familiarity, convenience, a two-way dialogue, and something that was engaging and empowering.
As the world’s biggest employer of young people, McDonald’s used gamification and virtual reality to train people – enabling and equipping them to have confidence in front of customers.
Flexibility was also important as people want the freedom to manage their work and private lives. Technology is giving people the opportunity to take control of their schedules – request holidays and swap shifts, for example.
There have also been a number of local innovations. In France chatbots have been used to select people with the hospitality gene; using Snapchat so that candidates can record a video of themselves as part of the recruitment process. In the UK customer feedback is shared with people via named notifications, providing immediate positive reinforcement in the restaurant. This can be further complemented with external social interactions; in Australia, Instagram is used with #HostBoast to add an extra dimension to positive feedback.
All of this must be underpinned by two-way dialogue; using digital to help people understand how we can solve problems for the customer. The team at McDonald’s is creating a tapestry of solutions designed around feelings and needs of the people.
Key lessons:
- Start with the customers – make sure it’s anchored in strategy of the business.
- Overlay feelings and the needs of people to get to the moments that really matter.
- Build on bright spots – find something that works and build on it.
- Embrace the culture – legacy of entrepreneurial spirit at McDonald’s.
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Please note you do not have access to teaching notes, mcdonald’s serves up hr success … in 91 countries around the world.
Management Development Review
ISSN : 0962-2519
Article publication date: 1 February 1997
What is the McDonald’s recipe for international success? Describes how the company translates its winning human resource practices into many different cultural settings.
- Fast‐food industry
- International trade
(1997), "McDonald’s serves up HR success … in 91 countries around the world", Management Development Review , Vol. 10 No. 1, pp. 42-43. https://doi.org/10.1108/EUM0000000004355
Copyright © 1997, MCB UP Limited
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Big Mac’s McGlobal HR Secrets
By Charlene Solomon
Apr. 1, 1996
It’s no small potatoes. McDonald’s International, that is. Cooking up its first international revenues in 1967 with restaurants in Canada and Puerto Rico, McDonald’s now serves up a fast-food extravaganza ranging from soup to nuts (or nuggets, in this case) in 18,380 restaurants in 91 countries. Total revenue for 1995 was more than $10 billion, and total sales outside the United States contributed 54% to the firm’s consolidated operating income for the year. This is an organization that knows how to grow globally. Each day, more than 33 million people around the world are gobbling down McNuggets and Big Macs faster than you can say: “two all-beef patties special sauce lettuce cheese pickles onions on a sesame seed bun.” And they’re served by more than one million employees, with estimates that the number will double by the year 2000. It’s a company that reveres flexibility and sensitivity to local cultural mores. You may think that translates into flavoring the burgers a little differently from country to country, but the company’s global astuteness is much more far-reaching and profound. For a business, in the minds of Americans, that’s synonymous with all-beef hamburgers, McDonald’s will open its first restaurant in India this year without any beef products at all. Vegiburgers, or burgers made with mutton or lamb, may take their place. And, as an organization that holds distinction for actively promoting diversity in the United States, it has a restaurant in Saudi Arabia with two dining rooms—one for men, the other for women and children. These are lessons in profitable cultural sensitivity. This cultural sensitivity spills over to the company’s HR practices. “One of our guiding principles is that our restaurants should always be a reflection of the communities they serve—not only the individuals we employ and the culture and ethnicity of those communities, but also the employment practices,” says Rita Johnson, staff director in international human resources with responsibility for Central Europe. That means not stuffing the American way down their throats, but rather taking the company’s best practices from around the world and working with local staff to blend those into local practices. McDonald’s then comes up with the most effective way of doing things in a particular location. “While there may be some specific differences worldwide in local labor laws or employment practices, our philosophical approach to employment is the same whether we’re in Beijing or Budapest,” says Robert Wilner, home office director, international human resources. Adds Johnson: “Our global perspective is that whatever market or country we’re going into, we always employ the most positive people practices and exceed the expectations of our employees.” McDonald’s vision is just the beginning. Exceeding expectations is something McDonald’s does well. Try to remember life before drive-thrus and you get a taste of the influence this corporation has had on our lives. It’s not just vision. Good ideas wilt like week-old lettuce if there’s no business acumen to propel them. And, while McDonald’s may convince its customers that they “deserve a break today,” the company is relentless in its pursuit of expansion based on solid business goals. All you have to do is look at the organization’s selection, hiring and training procedures to know instantly that it works very hard to align HR systems with business objectives. And the planning required before entering a new country is anything but fast-food casual. “When we open in a country [that’s] new to us, we do exploratory visits—sometimes several years in advance of building the first restaurant,” Johnson explains. “We collect information so we can approach it from a fact-based, decision-making standpoint. We need to be sure the market is going to be profitable for us so we take a look at the demographics.” The company asks itself: Would this particular market support a restaurant? What other food-service industries are currently in this country? Would we be the first food-service company or are our competitors currently established in the country? What kind of success are they having? In addition, the company benchmarks with other companies already in the country to find out what their problems and issues are. What would they do differently, and what are their HR issues? What kind of business infrastructure already has been established? As those questions are answered, HR rolls up its proverbial sleeves and steps up to the front of the line. It has a new-country outline that contains a list of employment-practice questions that must be answered as part of the fact-gathering stage. What are the labor laws? Would the company be able to establish part-time and flexible work schedules? Are there a specific number of hours employees are allowed to work? Can the company employ youth under the age of 18? What other services must the company provide? In many countries in Central Europe, for example, employers must provide showers and lockers. This may be from a lack of shower facilities where individuals live, an inadequate supply of hot water or simply the high cost of using standard utilities. So the employer is expected to provide some of the services that may not be easy to get at home. McDonald’s already does this in many of the countries in which it operates, including Rumania, Slovakia, Latvia and Poland. In many locations, just building the golden arches and locating food that will meet company standards requires hiring an entire network of support services such as engineers, construction workers and agricultural experts. It’s a tall order for HR professionals to fill. But one they have had lots of practice doing. Entering a new country requires extensive planning and flexibility. To enable McDonald’s to open restaurants in new countries, the new local HR managers, as well as the local restaurant managers, must receive training. So they can observe real operations, the training often takes place in a country where there’s already an established restaurant. A sparkling-clean, stainless-steel counter with quiet cash registers and no customers is quite a different work scene than one with bustling crew members reaching over each other to scoop fries into paper bags, fill beverages and scurry to get the requisite Filets-O-Fish and Quarter Pounders on trays or in take-out bags while people are lined up 10-deep. Consequently, training new managers often requires that they cross borders regularly—to train Monday through Friday and then travel home on the weekends. This means visas and work permits have to be in order for each employee, which can be a tricky balancing act. HR must ensure all paperwork is prepared accurately well in advance, but not too far in advance—because these individuals can’t be employed too far ahead of the training period. “We currently have managers training in New Zealand who live in South Africa,” says Johnson. “When we interviewed in South Africa, one of the questions we asked was if the person had a passport. That’s a question we wouldn’t ask in the United States.” And, early on, local attorneys well-versed in labor laws coordinate with the HR director for the country to establish what the policies are going to be. “We have a responsibility to ensure that all the local employment practices, policies and regulations are met. We do a lot of research to ensure that happens. We understand as a global company that we can’t simply take the employment practices as they are in the United States and transplant them,” says Johnson. However, there are times when McDonald’s introduces American ways to other countries—for everyone’s benefit. “Typically, when we go into a new country, there are lots of times when the quick-service restaurant industry is either nonexistent or very new. As a result, the culture, laws and customs don’t accommodate the things we need to operate our business properly. It becomes an opportunity for McDonald’s to bring some of these things into a country and to put some folks into the workforce who wouldn’t normally be in the workforce, particularly homemakers and university students who are working for the first time,” says Dan Laino, home office director, international human resources. “We often introduce the concept of flexible scheduling or part-time scheduling. It’s quite a common occurrence for us to go into a market and have our practices of flexible and part-time schedules be the first that have ever been introduced. Sometimes we have to be very adaptable and patient in trying to establish these practices,” says Laino. For instance, it isn’t something the company can implement immediately in some cases, especially if the common employment practice is to hire individuals full time. It may require a lot of time talking to labor ministries as well as other local business people to explain the advantages of having flexible or part-time scheduling as an employment practice. Full-time employment precludes young people and students in some cases from holding a job. “We provide the fact-based rationale that you can actually employ more individuals if you have a practice of part-time employment because some of those people have children at home or are students and aren’t able to be employed full time,” says Johnson. Selecting the best from a menu of talent. Whether hiring full-time managers or part-time cooks, recruitment is easy for McDonald’s. When it began hiring for its restaurant in Moscow’s Pushkin Square, 27,000 applicants tried out for the opportunity to don Ronald McDonald’s colors. This initial rush of applicants is typical because of the company’s immediate brand recognition. “We put the arches in a newspaper [ad] and we get an onslaught,” says Laino. “The trick is to maintain that employer image and enhance that image so we’re the employer of choice in a country.” McDonald’s establishes itself as an employer of choice by paying top wages for high-quality employees and providing a benefits package that exceeds the minimum. “If you want to employ the highest caliber of individuals, you need to pay them a wage that draws [them in],” says Johnson. What does that high-caliber individual look like? The most common trait McDonald’s employees share is an attitude that customer service is most important. “The employee’s ability to be customer-service oriented is just as important whether [he or she is] serving the customer directly or whether [he or she is] serving someone who’s serving the customer directly,” says Wilner. Selection, therefore, focuses on identifying employees—whether entry-level or management—who are customer- focused. It begins with recruitment advertising that emphasizes customer service and continues with preliminary screening that restates this theme: The right attitude is equally as important as—or more important than—technical competency. Then, as the company moves into its selection systems, it looks at specific skills, general knowledge and customer service. “Finding, developing and retaining the best people is one of our most important functions in HR, and we see it as an integral part of our success as a company,” says Wilner. Some naysayers don’t believe the McDonald’s attitude translates into every language. Before opening Russia’s Pushkin Square restaurant, now the busiest one in the world serving 40,000 to 50,000 customers daily (for a total of 50 million since 1990), many people on the sidelines expected it wouldn’t be easy to motivate employees: that this crew of 1,560 individuals weren’t going to want to wait on customers, smile and have a good time doing it. “I think back when we first opened in Moscow and people said they weren’t going to be the type of employees who were going to get turned on,” says Laino. “When we opened the first restaurant, worldwide video coverage showed that customers would walk in and they thought they’d landed on another planet. They faced a highly enthusiastic, high-spirited crew at the front counter [with arms extended, and with] smiles on their faces, asking if they could be of help. That’s what we call ‘ketchup in the veins.'” How does McDonald’s ensure it hires these kinds of individuals? Already in the hopper is research about successful McDonald’s managers and the knowledge, skills and abilities they possess. A success profile includes leadership skills, ability to manage people in the restaurant environment and high work standards. For store management positions, after the initial screening and before the final decision, people are invited to work for three to five days in one of the restaurants. “It gives the applicants a chance to try out the job and screen themselves out. It also gives us an opportunity to see how the people actually function in the environment they actually are going to be working in,” says Wilner. With a strong commitment to staffing locally and promoting from within—even when opening locations in new countries—McDonald’s HR finds good talent efficiently. The commitment initially is to find good people and be able to turn over the operation to local employees who will run and manage it. Take Beijing, for example. The Tieneman Square McDonald’s opened with approximately 100 managers for a large, 26-cash-register restaurant. After they were hired, workers began training in Senzhen, which is approximately 1,000 miles away. “We have them work in a restaurant working typical shifts, working shoulder-to-shoulder with an existing manager learning some of the basics of the management job, and at the same time we get a chance to try them out,” says Wilner. The manager fills out an evaluation, and the individual fills out one to determine whether or not a job offer should be made. “Our belief in promoting people from within, throughout all levels of the company, is a major way we source our management people in China, as well as in other markets around the world,” Wilner says. With a large percentage of store managers who have come up through the ranks, it helps attract people because they know they can work hard and move up. “It also fills our recruiting needs. When we have someone who understands our corporate culture, understands our way of doing business and understands the local culture, it’s a successful part of the way we develop our global talent.” Comprehensive training assures uniformity. Having the right employees in place is just the first step. Then, there’s training. And, if the company serves up anything well, it’s certainly training. Hamburger University may be headquartered in Oak Brook, Illinois, but it’s set up to provide training in 22 different languages, to provide simultaneous translation and even to teach in two languages at the same time. There are also training centers in Munich, Germany; Tokyo; Sydney, Australia and London. The training centers get it down to such details as being sure crew members know at what temperature hamburgers are supposed to be cooked and how to inspect restaurant facilities to ensure quality standards are met. There’s a complete training department in mainland China as well. Managers are taught to give performance reviews, including how to give feedback, how to listen and what to do if a person becomes defensive. And, similar to other locations around the world, the China facility trains managers on every facet of the operation. They, in turn, train their crew employees. Little things such as logistics may get in the way, but McDonald’s managers consider them only hurdles to overcome. For example, when the company was opening new locations in South America, some pieces of equipment were available, but managers learned that the hamburger grill and the deep-fat fryers wouldn’t arrive in time to train employees before the store opened. So, what did they do? They created mock-ups of the equipment out of cardboard. Crew members practiced cooking burgers on a cardboard grill and worked dummy fryers to perfect their skill in cooking McNuggets and fries. Indeed, by being able to simulate the training it needed for the crew, the restaurant opened on time with a trained staff. McDonald’s sees its biggest challenge today as trying to set itself apart from its competitors. In its 1994 annual report, McDonald’s says: “In a copycat world, the best way to stand out from the crowd is through customer satisfaction—100% of the customers, 100% of the time…. It’s no longer enough to measure restaurant performance by our internal standards, no matter how exacting. Success has to be measured through the eyes of the customer and the people who serve them.” While many businesses may not need to approach their operations with this level of exactness and attention to detail, McDonald’s way of careful planning is a lesson for every business. It’s a multinational company that’s able to deploy its HR talent globally to painstakingly address local concerns. It requires flexibility and creativity—and some of those special ingredients—that all companies can create if they desire. Personnel Journal , April 1996, Vol. 75, No. 4, pp. 46-54.
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The McDonald's case shows that HR must help leaders tackle the causes of bullying
The shocking allegations of bullying, racism, abuse, and sexual harassment emerging from the BBC investigation into McDonald’s highlight why creating a culture of openness and transparency is essential in the modern workplace.
Employees must feel empowered to come forward and report wrongdoing, and that comes from an understanding and expectation that action will be taken and why.
Too often I see companies and leaders do the opposite, burying bad behaviour due to misplaced fear of ‘opening a can of worms’ or ‘encouraging employees to bring personal grievances into the workplace’.
It creates conditions where repeated behavioural breaches can thrive.
McDonald's sexual harassment alleged by staff
McDonald's under supervision from human rights watchdog
Why McDonald's is still getting it wrong on sexual harassment
Although McDonald's entered its legally binding agreement with EHRC with good intent , it has exposed examples where the opposite is happening.
Companies can be quick to say, 'we don't have a problem here', without seeking to find out or becoming blind to what really goes on. That needs to change.
I had a largely positive experience working as a senior manager at McDonald’s for seven years in the late 1990s and early 2000s with responsibility for more than 70 staff across five restaurants.
It provided skills and opportunities I may not have had elsewhere at such an early age.
It was a different time when sensibilities and social norms were not the same as they are now. That didn’t make the incidents of inappropriate behaviour, bullying, and even sexual harassment I witnessed any less wrong than they would be in a modern context .
While these incidents were quickly and efficiently dealt with at the time – with those responsible dismissed – that’s where action ended. There was no communication with staff as to why those responsible had suddenly been let go.
No context or explanation was provided as to what they had done, or why it cannot be tolerated.
It was an approach taken with good intentions, but it did not address root causes of these issues or help foster a culture where employees felt they would be listened to if they identified or reported inappropriate or unlawful behaviour. It’s an approach still prevalent in too many organisations today .
The McDonald’s workforce is generally very young, and for most it will be their first part or full time job and step into a career.
There is an expectation of maturity in the workplace that does not necessarily reflect the stage of emotional development outside of work.
In that fast-paced, target driven, franchise environment, good role models are vital to establish the right behaviours and cultures – problems arise when the role models do the opposite.
The company has strong management and leadership development programmes in place, but in my experience, these were very operationally focused, and did not cover developments in areas such as EDI or emotional support structures more commonplace today. There was too much focus on policy and procedure, but not always on the tactical element – how these issues would play out in real life.
To create a culture where people learn the right behaviours, leaders must put the uncomfortable subjects on the kitchen table.
Employees must be able to engage with them and ask questions. Dismissal without explanation does not work. A round robin email won’t cut it. It must be two-way, employees need to know they’ll be listened to.
A company we worked with recently arranged a town hall style meeting to discuss a dismissal. That kind of approach encourages a culture where employees can come forward so that issues can be nipped in the bud. I’m reminded of the message on the London Underground – see it, say it, sort it.
HR professionals have an important role to play in guiding leaders towards creating this culture of openness. Leaders will often push back initially, but they must be educated on the benefits, from the obvious reduction in incidents of inappropriate behaviour, to lowering of staff turnover and helping attract and retain higher calibre staff.
The McDonald’s investigation highlighted significant issues within the business, but the steps they need to take to address them serve as a lesson to all of us. Colin Lamb is founder and CEO of leadership consultancy Connect Three
Further reading
McDonald's sexual harassment alleged by staff
How McDonald’s can avoid future accusations of sexual harassment, racism and bullying
Mcdonald's under supervision from human rights watchdog.
Tackling bullying and harassment issues in the remote workforce
Sexual assault in the NHS: why HR processes are failing and how to fix them
Why mcdonald's is still getting it wrong on sexual harassment.
Improve workplace culture to tackle sexual harassment, finds report
We all need to tackle racist bullying at work
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Audrey Chin, HR director for McDonald’s Restaurants, speaks to Sabrina Zolkifi about how word of mouth has helped the company recruit some of the best and brightest talent.
“We offer our crew incentives to spread the word, and many of our new hires come from referrals,” Audrey Chin, HR director for McDonald’s Restaurants, says.
Chin is particularly proud of McDonald’s commitment to building fair recruitment practices and a highly diverse workforce.
“We were a pioneer in the hiring of mature workers here in Singapore and our employees come from all ages, races and walks of life.
“This has helped us create a fun and dynamic environment in the workplace and gives us a greater pool of talent to draw on,” she says.
On top of actively building a heterogeneous workforce, Chin says the company also keeps in mind candidates’ potential to be developed into future leaders during the interview process.
The company offers both full-time and part-time opportunities for candidates so “there is something for him or her at McDonald’s”.
But Chin admits it’s a challenge to hire because of stiff market competition.
Therefore, she says McDonald’s was forced to think creatively when structuring its recruitment strategies so it could maintain the inflow of talent.
We are looking to deepen our relationship with the community and offer even more job opportunities to the locals.
“McDonald’s has a fun and caring environment for our staff and we always look to train and develop leaders from within and propel them ahead. Our restaurants can be found in every corner of Singapore and this proximity to work lace also attracts a lot of our employees,” Chin says.
She adds it’s important for leaders to identify those who are aspiring for a long-term career future in McDonald’s to join the company with a business mindset, excellent service mentality and leadership qualities.
“We recruit and offer them a series of training and development opportunities to develop them into the next generation of leaders. It is always important to look for and hire people who are able to succeed current leadership team so that the leaders can move on to their desired career progression.”
It is also important that senior leaders are involved in the entire talent development process, starting with recruitment.
“They also help out during National Hiring Days which happens twice a year. They are out in the streets, together with the restaurant managers and office staff. Other than team-bonding, it also gives them the opportunity to better understand the needs and challenges at the ground-level and hence develop solutions that work even better for our restaurants.”
Having a strong foundation in recruitment not only ensures a steady flow of talent into the company, but it is also important because having “the right hires provide good and efficient service to our customers in our restaurants to achieve the business goals”.
McDonald’s also goes a step further when developing its recruitment strategy by having all senior management and general and administration teams undergo up to four weeks of training in the restaurants before they embark on their respective roles.
“This is an excellent programme for them to develop strategies that are based on the restaurant operation needs, customers and business goals in mind,” Chin says.
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MacDonald Change Management Case Study
McDonald’s, one of the most recognizable fast-food chains in the world, has undergone significant changes in recent years to adapt to changing market trends and consumer preferences.
These changes required a comprehensive change management strategy to ensure a smooth transition and successful implementation.
In this case study, we will examine external and internal factors that forced McDonald’s to initiate changes, key steps taken to implement those change, and the results of the change management.
Let’s start with overview and background of MacDonald.
Overview of MacDonald History
McDonald’s is a global fast-food chain that was founded in 1940 by Richard and Maurice McDonald in San Bernardino, California.
The original concept was a small drive-in restaurant that served burgers, fries, and milkshakes.
In the 1950s, Ray Kroc, a milkshake machine salesman, became involved in the business and helped to transform it into a franchise model, which rapidly expanded across the United States and eventually the world.
Today, McDonald’s operates over 38,000 locations in more than 100 countries and serves approximately 69 million customers daily.
Over the years, McDonald’s has faced many challenges and has adapted to changes in the market and consumer preferences, which has required the company to implement significant changes in its business model and operations
External factors that caused change
There were several external factors that contributed to the need for change at McDonald’s. Here are a few examples:
- Changing consumer preferences: Consumers are becoming more health-conscious and are demanding healthier food options. As a result, McDonald’s had to adapt its menu to include more salads, fruits, and vegetables to appeal to these consumers.
- Increased competition: There is intense competition in the fast-food industry, and McDonald’s faces competition from both traditional fast-food chains and newer, more innovative brands. To stay competitive, McDonald’s had to find ways to differentiate itself and offer unique value propositions to customers.
- Economic factors: Economic downturns and changes in consumer spending habits can have a significant impact on fast-food sales. McDonald’s had to adapt to changing economic conditions and find ways to maintain sales growth during challenging times.
- Technological advancements: Advancements in technology have transformed the way that consumers order food and interact with restaurants. McDonald’s had to embrace new technologies such as mobile ordering and delivery services to meet the changing needs of its customers.
Internal factors that caused change
There were several internal factors that contributed to the need for change at McDonald’s. Here are a few examples:
- Declining sales: McDonald’s experienced declining sales in certain markets, which prompted the company to re-evaluate its business model and operations.
- Operational inefficiencies: McDonald’s had become too reliant on its traditional business model and was struggling to keep up with changes in the industry. The company had to find ways to streamline its operations and make them more efficient to remain competitive.
- Cultural resistance to change: McDonald’s had a culture that valued consistency and uniformity, which made it challenging to implement significant changes. The company had to overcome this cultural resistance and find ways to foster a culture that supported innovation and change.
- Employee engagement: McDonald’s recognized that its employees play a vital role in the success of the company and had to find ways to engage and motivate them during the change management process. The company had to communicate effectively with its employees and provide them with the tools and resources needed to embrace the changes.
What were 03 biggest changes that Macdonald successfuly implemented
There were several significant changes that McDonald’s successfully implemented as part of its change management process. Here are three of the most significant changes:
- Menu diversification: McDonald’s recognized the need to adapt its menu to changing consumer preferences and introduced a range of healthier menu items such as salads, fruit, and grilled chicken sandwiches. The company also expanded its breakfast menu to include all-day breakfast and introduced new menu items such as the McWrap to appeal to a wider range of customers.
- Digital transformation: McDonald’s recognized the importance of embracing new technologies and embarked on a digital transformation strategy. The company introduced self-service kiosks in its restaurants, mobile ordering, and delivery services. McDonald’s also launched its own mobile app, which allows customers to order and pay for their food from their mobile devices.
- Restaurant redesign: McDonald’s recognized the need to create a more modern and appealing restaurant experience to attract younger customers. The company invested in a redesign of its restaurants, which included a more contemporary design, comfortable seating, and interactive features such as touchscreen ordering. The company also introduced table service in select locations to improve the customer experience.
These changes were significant and helped McDonald’s to remain competitive and appeal to changing consumer preferences. The successful implementation of these changes required a comprehensive change management strategy that involved collaboration with employees, effective communication, and a commitment to innovation and continuous improvement.
MacDonald’s leadership role in implementing change initiatives
McDonald’s leadership played a crucial role in the successful implementation of change initiatives. The company’s leadership recognized the need to adapt to changing consumer preferences and competitive pressures and committed to a comprehensive change management strategy to drive growth and improve performance.
One of the key leadership roles was played by Steve Easterbrook, who served as the CEO of McDonald’s from 2015 to 2019. Under Easterbrook’s leadership, McDonald’s implemented several changes, including menu diversification, digital transformation, and restaurant redesign.
Easterbrook was instrumental in driving the company’s innovation agenda and creating a culture of continuous improvement. He encouraged employee engagement and empowerment, which helped to drive innovation and ensure that employees were invested in the changes.
Easterbrook also prioritized effective communication, ensuring that employees and customers were informed about the changes and that feedback was solicited and acted upon.
In addition to Easterbrook, McDonald’s leadership team was also instrumental in the successful implementation of change initiatives. The company’s leadership team provided the vision, strategic direction, and resources necessary to implement the changes effectively. They also provided the support and guidance necessary to overcome resistance to change and ensure that the changes were embraced by employees and customers.
Results of the successful change management implemented by MacDonald
One of the biggest outcomes of the changes implemented by McDonald’s was an improvement in its financial performance. The changes helped the company to increase sales, improve profitability, and strengthen its competitive position in the fast-food industry.
For example, McDonald’s menu diversification strategy helped to attract new customers and retain existing customers who were looking for healthier food options. The introduction of digital ordering and delivery services also made it easier for customers to order from McDonald’s and increased the convenience factor, which helped to drive sales growth.
In addition, the restaurant redesign helped to create a more modern and appealing restaurant experience, which helped to attract younger customers and improve customer satisfaction. The successful implementation of these changes helped McDonald’s to achieve its financial goals and improve its overall performance.
Another significant outcome of the changes was the improvement in McDonald’s brand perception. The company’s menu diversification and focus on healthier food options helped to improve its reputation and attract customers who may have previously avoided McDonald’s due to concerns about the nutritional value of its food.
The introduction of digital ordering and delivery services also helped to improve the customer experience and create a more positive perception of the brand. Overall, the changes implemented by McDonald’s helped to strengthen the company’s brand and improve its reputation in the market.
Final Words
McDonald’s change management process provides an excellent case study for other companies looking to implement significant changes to remain competitive and adapt to changing consumer preferences. By following a comprehensive change management strategy that involves employee engagement, effective communication, and a commitment to innovation and continuous improvement, companies can successfully implement changes that drive growth, improve profitability, and strengthen their competitive position in the market.
About The Author
Tahir Abbas
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