Chapter 1

Introduction

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 McDonald’s Pakistan
I’m lovin’it

1.1 Vision:
To be the world's best quick service restaurant experience. Being the best means
providing outstanding quality, service, cleanliness and value, so that their food
makes every customer in every restaurant smile

1.2 Mission:
McDonald's mission is to be their customers' favorite place and way to eat with
inspired people who delight each customer with unmatched quality, service,
cleanliness and value every time.

1.3 About McDonald’s:

1.3.1 Restaurant:
Aiming to be the world's best quick service restaurant experience, McDonald's
started its operations in Pakistan in 1998 and is a leading fast food service retailer
for its valued customers. With a strong belief in the phrase when it's green it's
growing, McDonald's Pakistan is growing with the focus to provide friendly and
quick service restaurant experience to their customers. Currently McDonald's
Pakistan is operating in various cities of Pakistan I-e Lahore, Faisalabad, Karachi,
Hyderabad, and Islamabad & Rawalpindi with the plans to cover the customer
base in various other cities of the country.
McDonald's Pakistan is a part of the Lakson Group of Companies, with a regional
office in Lahore and the main Head Office in Karachi. They are operating with a
network of restaurants to reach our customers for providing friendly services in all
different regions of the country.

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McDonald's a Global Phenomenon:

Formed in 1954, McDonald's brand is the leading global foodservice retailer with
more than 30,000 local restaurants serving nearly 50 million people in more than
120 countries each day. Its rich history began with the founder Ray Kroc's vision
and his commitment, transformed in their talented executives, and will keep the
shine on McDonald's arches for years to come.

1.3.2 Core Values of McDonald’s:

• Integrity and Honesty

• Open, Respectful and Supportive
• Prepared to take challenges and see them through
• Deep regards for Customers, Business partners and employees
• Quality in Product

1.3.3 Departments of the Organization:

• Finance Department
• Human Resource Management
• Marketing Department
• Operation Department
• IT Department

Quality:
McDonald’s is very strict about the quality of services they provide. They don’t
compromise anything over quality. Quality is considered to be one of
their foremost objectives. They want 100 % quality of service. Quality is
checked on for:

 High standard of food, services provided to the customers.

 Communication skills i.e. English speaking skills
 Appearance and grooming
 Ability to communicate with guests and handle versatile situations.

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 1.4 Hierarchy of McDonald’s:

Head of Department

Senior Manager Senior Manager

Manager Manager Manager Manager

Assistant Manager Assistant Manager

Executive Executive

Coordinator Coordinator

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 Chapter 2
HR Planning & Methods of Job
Analysis & Evaluation

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 HR Department of McDonald’s

2.1 HR Introduction:
At McDonald's Pakistan, their people are their most important asset. They provide
the best employment experience for their employees in order for McDonald's
Pakistan to achieve their goal of providing their valued customers with the
world's best quick-service restaurant experience. They strive to recruit the
best, hire the best, and provide the best place to work

The commitment to their employees is shaped on the simple fact "We value you,
your growth and your contributions" and this is they strive to achieve through
their actions every day.

2.2 HR Planning:

HR planning’s purpose is to determine what HRM requirements exist for current

& future supplies & demands of workers. To realize the McDonald's service
vision, the organization believes in strengthening their team and ensures to deliver
the right skills and knowledge to the right person for getting the right job done.
The strength, for making the strong team players to shine under the Golden
Arches lies in the People Practice and Development Program.

HR practices:

The field of HRM comes into existence in the result of these questions:

• How did people come to be employees in their organization?

• How were they selected?
• Why do they come to work on regular basis?
• How do they know what to do on their jobs?
• How does management know if the employees are performing adequately?
• And if they are not, what can be done about it?

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 • Will today employees be adequately prepared for the technologically
advanced work the organization will require of them in the years ahead?
• What is the compensation process?

The HR department of McDonald’s fulfills all the requirement of these questions

in the true sense of the meaning. As HR department deals with people
McDonald’s strongly believe in well being of people because it is a known
quotation that

“If you take over the liabilities of your employees they will take yours”

HR Functions Of McDonald’s:

HR department of McDonald’s Pakistan does certain functions :

• Planning

• Recruitment & selection

• Training

• Administration

• Company manuals

• Performance management

• Decision procedures

• Define company’s policy

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2.3 Job Analysis Method:
Job analysis is the procedure of determining the duties and skills required for a job
and the kind of person who should hired for it.
Analyzing the job in McDonald’s is done by the Human Resource Department.
They develop the job description related to different departments regarding their
duties, responsibilities, reporting relationships, working conditions and
supervisory responsibilities. Once when the job description is prepared,
restructuring in the job is done based on the observations of the seniors.
In McDonald’s job Analysis is done on the basis of Interviews.

2.4 Job Evaluation Method:

Job Evaluation means making decision about the wages and salaries of the
employees on the basis of job analysis it can also be called as compensation.
In McDonald There are two types of working hour’s employees:
• Part Time Employees
• Full Time Employees

In McDonald’s they have predefined standards on which employees are

awarded on the basis of their skill, knowledge and experience. The Full Time
Working Employees are given salary on monthly basis were as the part time
employees are given salary on the basis of the total hours they have worked

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 Chapter 3

Recruitment & Selection

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 Recruitment and Selection Process

3.1 Recruitment:
Recruitment is a phase that immediate precedes selection. Its purpose is to pave
the way of the selection process by producing ideally, the smallest number if
candidates who appear to be capable. The objective of recruitment procedure is to
attract suitable candidates in order to produce a short list for future investigation
in the selection process.
3.2 Recruitment process:

In McDonald’s the recruiting and hiring process for selecting starts from the
applications submitted by the individual. We provide their CVs along with the
applications. These applications and CVs are screened out on the basis of:

• Merit;
• Institute; and
• Experience etc.

After this, The Candidates who meet the criteria are selected for the further
process. Then the H.R Department lists out the salient features of the CVs (only
the accepted CVs). Then the H.R. Manager takes a test based on:

• English comprehension
• Basic mathematics
• I.Q. and
• Some questions about the particular job, for which the
applicants have applied.

In McDonald’s Recruitment is done on the demand of the Organization. There are

two types of Recruitment is done
• Internal Recruitment
• External Recruitment

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3.2.1 Internal Recruitment:

McDonald’s do internal recruiting i.e. they select the candidates from the inside
by considering a specific number of internal potential candidates who have
applied for the job on the basis of their past performances and qualifications for
the required job. Any employee at a reasonable post can submit his /her
application for the job. The management has all the information relating to the
person’s record about the job he/she is currently performing. On yearly basis, the
summary of the employees is maintained in the form of records, which gives the
organization maximum chance in selecting the potential employees as the heads of
the departments. The HR manager and the Head Manager of the specific
department interview the selected employees.

3.2.2 External Recruitment:

McDonald’s often go for the external recruitment they mostly try to go for the
internal recruitment or internal promotion of the employee to the high post but in
case an employee leaves the organization They Organization have a bulk of
application received through the website www.rozee.pk .The organization
advertise through newspapers or web.

Criteria Required For Employment:

The qualifications required for employment in McDonald’s are as follows:

 Appearance and grooming

 Professional Qualifications
 Experience and knowledge
 Communication skill in English
 Leadership skills
 Potential for growth
 Reasoning and Judgment
 Computer skills

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3.3 Selection Process:
With the pool of applicants, the next step is to select the right person for the job
this usually means whittling down the applicant pool by using the screening tools.
In McDonald the selection process involves the following steps:
• Initial Screening
• Employment Test
• Background Investigation
• Medical Examination
• Permanent job offer

Employment Tests:
Every big organization in the world uses a test for the hiring of people, from
inside as well as outside. These companies use many types of tests to judge the
people we are hiring and to have utmost guarantee that the people we are hiring
are perfect from every point of view. These test judge the candidate according to
his mental and cognitive abilities.
McDonald’s take tests as far as their candidates are concerned to check there full
abilities. The tests are of different nature like:

• Test Of Cognitive Abilities

These kind of tests include IQ tests, general and intellectual abilities,

verbal fluency, vocabulary etc. These tests are generally conducted while
recruiting executives and supervisors.
• Motor And Physical Ability Tests

These tests include checking the performance of the employee usually

working on the machines in operation department to check their reflexes
and while working at their work place.

• Measuring Personality Interests

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 Involves taking into consideration the personal interests and motivations of
the person in his field.
Candidate’s ratio:
Within the pool of candidates, if the demand is for 1 employee then the ratio for
selecting is the employees is 1:5, and if the demand is for 2 employees then the
ratio becomes 2:10 and so on.

Interviews:

When the managers make the selection the phase of interviewing the employee
comes. The interview is taken from the employees in two ways i.e.
 Top level interviews
 Low-level interviews.
In top-level interviews the General and Division Manager of McDonald’s takes
the interview of candidates for the Executive post. In low-level interviews the
Heads of the departments takes the interviews of candidates for the Associate
heads, officers, managers, and assistant manager’s posts. After the selection is
made the General Manager approves the candidates.

Type of Interviews:
Paneled interviews are taken from the candidates and the panel consists of the HR
manager and the head of the particular department for the interview is being
conducted. If an interview for an important post has to be done for a function head
then the GM himself indulges into it and performs a combined interview.

Background Investigation:
Once an employee is appointed the investigations and reference checks are done
by the HR manager. In McDonald’s, reference checking is referred to as revising
the ‘Job History’ which contains
 Job applied for i.e. the experience of the employee for the job.
 Relevant qualifications.
 Salary

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After Conducing the interview and all relevant investigation they employee is
called to join the job.

Number of employees:
The ratio of women working in McDonald’s with respect to men is 1:3. Total
employees in McDonald’s are more than 1300 plus. The policy of McDonald’s is
to give females full chance to do the job. There are 3 shifts operated in
McDonald’s
 Morning Shift
 Evening Shift
 Night Shift

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 Chapter 4

Training & Development

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 Training and Development

4.1 Orientation:

Orientation of the new employee is carried out according to priority of heads.

Firstly the employee is formally told about what kind of outfit to wear on work.
Then he/ she are provided with the orientation kit. The employee has to spend 15
– 20 days in different departments under one specific department like if an
employee is appointed in the HR department then he/she has to spend 20 days in
different sub departments under the HR Department like HR development
department, HR administration Department, Hr training Department etc. The head
of the department specify the objectives to be carried out.
Employees get the evaluation time of 6 months to prove their skills and
knowledge about the job being done. And after 6 months they are given the
appointment letters as permanent employees.

4.2 Training:

The employees are given training in the “Training Room” in the form of lectures.
Firstly the employee is given the on-job training and then he/she is given the
actual task to perform. McDonald’s arranges summer crash courses and wrap
section for the employees. Job Rotation is done within the specific departments
and not outside the departments.

4.3 Development:
McDonald’s is a large organization with many employees working in different
departments of the company. Every year the company hires many people for it
executive as well as managerial posts. In McDonald’s there are different types of
development plans for management for e-g MDP 1, MDP 2 , MDP 3 and CLDC
(Crew Leader Development Course).There are also development programs for
the low level jobs for enhancing the skills of the employees

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Career Development and Fair Treatment:

McDonald’s provides facilities to employees for career development during their

employment. Different training courses are offered to their employees such as
summer crash courses arranged. Transfers of the employees are carried out with
the consent of the employees. The communication of employees is directly with
their head of the department. There is a vital concept of two-way communication.
At McDonald's, employment is at will. This means that employees are free to
terminate their employment at any time, for any reason, with or without cause, and
McDonald's retains the same rights. . The Management career in McDonald's
Operations starts from the position of Trainee Manager, and follow the path like
the one outlined below.

• Trainee Manager
• Second Assistant Manager
• First Assistant Manager
• Restaurant Manager
• Beyond Manager

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 Chapter 5

Performance Appraisal Process &

Methods

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 Performance Appraisal

5.1 Performance Appraisal:

Performance Appraisal is a structured formal interaction between a subordinate
and supervisor ,that usually takes the form of a periodic interview , in which the
work performance of the subordinate is examined and discussed, with a view to
identify weakness and strength as well as opportunities for improvement and skill
development.

5.1.1 Performance Appraisal Method:

Employees in McDonald’s have a race to win based on their efforts. The

employees do their best to give the best performance through their skills and
knowledge. A kind of competition is among the employees to become the best
employee. The appraisal methods used are of two types, i.e.

 Graphical Rating Scale

 360 degree Feedback

Appraisal interview is taken by the department head only. Progress report is in the
hands of the department head. Yearly appraisals of employees are done with in
June-July. Appraisals are done yearly but they can also be done at any time of the
year by the department head on the basis of employee’s marvelous performance.

Through the graphical rating scale the head of the department rate the person
according to the performance of its work, skill, knowledge, experience and also on
the performance in the training programs and after the assessment according to the
rating scale rate the employee is appraised.

Upward feedback is done by 360 degrees i.e. information is collected “all

around” an employee from his or her supervisors, subordinates, peers and
customers. This term is also known as “multi source assessment”. Subordinates
can appraise their seniors. With the help of the “Employee Satisfaction Survey”
the heads get to know which employee is giving what type of output. Raise in

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salary is done by 10%and if performance is also counted then 20% increment is
given at any time of the year.

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 Chapter 6

Compensation and Benefits

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 Compensation and Benefits

6.1 Compensation:
Compensation means all forms of pay or rewards going to employee and arising
from their employment .It has two main components, direct financial payments
(wages, salaries, commission, and bonuses). And indirect payments (financial
benefits like employer – paid insurance and vacations).

6.2 Employee Benefits:

McDonald's benefits program is designed to attract, energize, reward and retain

talented people who will produce superior business results and enhance their
leadership position. They recognize the importance of a strong benefits program.

People Promise:
People Promise is a statement of commitment to every person in the McDonald's
system. It is how they remind people what they can expect and how high their
goal is:
“To be the best employer in each community around the world”

McDonald's and its independent owner/operators have made a commitment to

their employees that they strive to achieve with their actions every day. And to
make sure they deliver on this promise, they have in place five people principles.
These people principles reflect McDonald's values and describe the culture they
embrace.

Respect and Recognition:

Managers treat employees, as they would want to be treated. Employees are
respected and valued. Employees are recognized formally for good work
performance, extra effort, and teamwork and customer service.

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Values and Leadership Behaviors:
All of employees act in the best interest of the Company. They communicate
openly, listening for understanding and valuing diverse opinions. They accept
personal accountability. They coach and learn.

Competitive Pay and Benefits:

Pay is at or above local market. Employees value their pay and benefits.

Learning, Development and Personal Growth:

Employees receive work experience that teaches skills and values that last a
lifetime. Employees are provided the tools they need to develop personally and
professionally.

Resources to Get the Job Done:

Employees have the resources they need to serve the customer. Restaurants are
adequately staffed to allow for a good customer experience as well as to provide
schedule flexibility, work-life balance and time for training

6.2.1 Benefit Categories:

For McDonald's Corporation employees at corporate, division and region offices,
many benefits those are:
• Medical and hospital facilities
• Free furnishing on having new home (managerial level)
• Provident fund ( ESOP)
• Company vehicles are provided to employees
• Choice to get new car after five years
• Umrah packages are offered to employees
• Leasing facilities are provided to buy cars, motorbikes, etc
• Picnics are arranged once every quarter

McDonald’s offer long-term benefits to its employees, like giving them

multinational visas, etc.

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 Chapter 7

Stress Management & Negotiation

Techniques

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 Stress Management

7.1 Job Stress:

Job stress is a chronic disease caused by conditions in the workplace that
negatively affect an individual's performance and/or overall well-being of his
body and mind

Organizational managers are interested in maintaining a low level of job stress for
good reasons: high level of stress a result in low productivity, increased
absenteeism and turnover, and an assortment of other employee problems
including alcoholism, drug abuse and a host of cardiovascular problems. Job
Related Stress has been associated with a vast array of diseases, such as coronary
heart disease, hypertension, peptic ulcers, colitis and various psychological
problems including anxiety and depression

7.1.1 Causes of Job Stress:

The causes of Job Stress are:
• Role Conflict
• Work overload
• Job Insecurity
• High Demand for performance
• Technology

At McDonald’s Job Stress is handled by conducting counseling sections in which

the Counselor identifies the flaw of the employees. Their objective is if people are
delivering and if they have any problem they solve it through counseling.

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7.2 Negotiation Techniques:
Negotiation Techniques are the ways the employer communicates its expectation
and goals of the organization to the employees.
At McDonald the expectations of the employer are:
• On Time,
• Neat and Clean
• Skills and Training
• Standards
• Teamwork
• Clean Spotless... Tidy... Sparkling. Customers expect every
McDonald's will be clean.
• Welcomed Guest crewmembers make each customer feel like a
welcomed guest.
• Service depends on crewmembers to deliver accurate and friendly
service with a smile.

To communicate these expectations Crew meeting are conducted

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 Critical Evaluation and Recommendations
After critically evaluating the HR Functions of McDonald’s we recommend the
following suggestions
• Job Analysis information should be collected through structured
questionnaire because it is more suitable method to collect job analysis
information in an organization like McDonald’s because it is inexpensive
and efficient way to obtain information from a large number of employees.
• McDonald is using “job position” source of internal recruitment but it
should also use Rehiring as a source of internal recruitment because
former employees are known quantities, and already familiar with the
company’s culture, style, and ways of doing things. This will also reduce
the training expenses.
• McDonald’s should use performance stimulation test for managerial
positions because it is effective method for selecting and promoting
managerial position .Although it is expensive but very effective method.

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