COMPENSATION MANAGEMENT AT McDonald INTRODUCTION

The McDonalds Corporation is one of the most successful global restaurant chains around the world. They have used effective management and global expansion strategies to enter new markets and gain a share of the foreign fast food market.McDonald's is not ust a burger company serving people! they are a people company serving burgers. McDonalds strategy of standardi"ing their products on its preparation# techni$ues of presentation along with the adaptation strategy has created a difference in McDonalds as compared to that of its competitors.

McDonald
McDonald's success is built on the highest standards of $uality# service and cleanliness delivered to customers in each of its restaurants. %ell&trained crew and managers are the first step to achieving these standards. 't is company policy to provide career opportunities that allow employees to develop their full potential. McDonald's restaurant is structured as an independent business# with restaurant management responsible for accounting# operations# inventory control# community relations# training and human resources.

Vision:
(McDonald's vision is to be the world's best $uick service restaurant experience. )eing the best means providing outstanding $uality# service# cleanliness# and value# so that we make every customer in every restaurant smile.(

Mission:
* )e the best employer for our people in each community around the world * Deliver operational excellence to our customers in each of our restaurants! and * +chieve enduring profitable growth by expanding the brand and leveraging the strengths of the McDonald's system through innovation and technology.

McDonalds began its ourney in 'ndia in ,ctober -../. The average McDonald's restaurant employs as many as 01 people & from crew to the restaurant manager. +s of today# they employ close to 2#311 people in 'ndia.McDonalds has over 41#111 local restaurants in more than -21 countries 51 percent of our restaurants worldwide are owned and operated by independent# local businessmen and businesswomen.

McDonald's recruit people through various means including advertisements# campus interviews# people referrals# placement agencies# 'nternet etc. McDonald's Training is a combination of on&floor and classroom training provided through our 6earning and Development Team with exposure to the various aspects of the business.The applicant attends a first stage interview and is offered (,n 7ob 8xperience( 9,78:. This is a 2&day assessment in a restaurant. ;uccessful completion at ,78 will lead to a final interview# after which the manager decides whether or not to hire the applicant

MCDONALDS ORGANISATION STRUCTURE:

McDonalds Wages and Salary Administration:

McDonalds is an e$ual opportunity employer. <ates of pay and conditions of employment are established and granted without regard to race# color# religion# age# gender# national origin# disability# or ancestry. =owever +verage mcdonald's worker salaries can vary greatly due to company# location# industry# experience and benefits Most employees are paid by the hour and are referred to as 'crew members'. ,ther >hourly-paid employee ? who work alongside them include Training ;$uad Members# Dining +rea =ost@esses# Aarty 8ntertainers# +dministrative +ssistants# ;ecurity Co&ordinators# Maintenance ;taff# Bight Closers# Cloor Managers and ;hift <unning Cloor Managers. These employees carry out more specific ob functions and to ensure the restaurant runs efficiently. The remaining restaurant&based employees are salaried managers. There are two types of managers each has a wage that reflect their responsibilities >;wing? >;alary?

The manager with most seniority present during the working hours is responsible for the entire store.# ;wing managers may represent the store in absence of a ;alary manager including work hour scheduling and task assignment. ,nly ;alary managers may distribute pay or deal with an employees pay . 8ntry level positions 9part and full time: start at minimum wage with possibility of a raise every six months.'f# at entry level# the candidate elects a >work any time? work schedule.

Pay and Rewards

McDonald pay and rewards program follows a (pay for performance( philosophyD The better employee results# the greater pay opportunities.

Base Pay
McDonald's maintains the competitiveness of base pay through an annual review of both external market data and internal peer data. McDonald's has a broadbanding compensation system. )roadbanding allows for flexibility in terms of pay# movement and growth.

Monetary Incentives:

The McDonald's Corporation 'ncentive Alan was established Bovember -# -..4. The Alan shall be administered by the Compensation Committee of the )oard of Directors of the Company 9the (Committee(:.

Incentive Pay
'ncentive pay provides employees with the opportunity to earn competitive total compensation when performance meets and exceeds goals. Cor McDonald's corporate# division and region offices# the Target 'ncentive Alan 9T'A: links employee performance with the performance of the business they support. T'A pays a bonus on top of employees' base salaries based on business performance and their individual performance.

Long Term Incentives

6ong term incentives are granted to eligible employees to both reward and retain key employees who have shown sustained performance and can impact long& term value creation at McDonald's.

Non- Monetary Incentives

McDonald's encourages employees through many effective ways. 8xcept the base pay# McDonald's establish competitive wage and promotion programs such as the '8mployee of the Month.'

Recognition Programs
<ecognition programs are designed to reward and recogni"e strong performers. Cor McDonald's corporate# division and region offices# these include the Aresidents' +ward and the Circle of 8xcellence +ward .

Company Car Program

Company car program provides eligible employees with a company car for both business and personal use. 'f eligible# employees can choose from a variety of

vehicles# depending on their level within the company. The program covers the cost of insurance# maintenance and repair.

McDonald's 8mployee )enefits

The following information highlights McDonald's benefits for ;taff e.g.# home office# division or region office.McDonald's benefits program is designed to attract# retain and engage talented people who will deliver strong performance and help McDonald's to achieve their business goals and ob ectives.

!eal"h and #ro"ec"ion

McDonald's offers three Areferred Arovider ,rgani"ation 9AA,: medical plan options McDonald's medical plans cover preventive care# including annual physical exams for employees and their family members. $i ion Supplemen" & 8mployees enrolled in McDonald's vision supplement plan# are provided coverage for eyeglasses and contact lenses# and discounts on 6asik laser vision correction surgery. Den"al & Dental plan allows employees to see the dentist of their choice and covers a wide range of dental services. Shor" and lon%-"erm di a&ili"y &. ;hort term disability provides benefits if an employee cannot work for more than -1 consecutive days. 6ong term disability coverage replaces /1E of the employee's monthly base salary while he or she is disabled. Employee and dependen" li'e in urance & McDonald's provides basic life insurance of two times the employee's base salary at no cost to the employee. 'n addition# employees can purchase additional life insurance coverage for themselves Acciden"al dea"h and di mem&ermen" in urance & +DFD covers employees if they die or are seriously in ured in an accident. McDonald's provides +DFD coverage e$ual to two times the employee's base salary.

 Tra(el and &u ine

"ra(el acciden" in urance & McDonald's provides travel

accident coverage of two times an employee's base salary at no cost to employees for employees traveling on company business. Depending on the employee's position# this coverage amount may vary.

In(e "in% in )u"ure

Taking care of employees current and future financial needs can be challenging. That's why McDonald's offer the following savings and money management programsD

Profit Sharing and Savings Plan

Arofit ;haring and ;avings Alan lets employees save from -E to 31E of their pay on a tax&deferred basis in the 01-9k: feature of the plan. McDonald's matches eligible employees' contributions with G4 for each G- of the first -E of pay they contribute# and G- for each G- on the next 0E they contribute. 8ligible employees may also receive a discretionary profit sharing match of 1E to 0E based on the first -E of pay they contribute. 8mployees are always -11E vested in their contributions and the company matches.

Mc$ave
McGave is a special money market fund for McDonald's employees. Money put into McGave is invested in the Arime <eserve Cund managed by T. <owe Arice.

MCDirect Shares
MCDirect ;hares is a direct stock purchase plan that lets employees further build ownership and reinvest dividends in the company.

Credit Union
+ll McDonald's employees can take advantage of a full range of services available through the Corporate +merica Camily Credit Hnion.

inancial Planning Services

This program gives employees access to professional financial planning services through +meriprise Cinancial.

O"her *ene'i" :
)alancing work with life outside of it can be challenging. McDonald's believes that it's important to strike the right balance. That's why McDonald's offer many programs designed to help their employees maintain the right balance.

!acation" #olidays
McDonald's offers paid vacation for corporate# region and division office employees as well as <estaurant Management employees. The amount of vacation time employees have available depends on how long they have worked at McDonald's. 'n addition# McDonald's offers nine paid holidays 9less for part&time workers: for eligible employees.

$nniversary Splash
8ligible employees get an extra week of paid time off in the year when they reach an anniversary >on the fives? I their five# fifteen# twenty&five or thirty&five year anniversary.

Sa%%atical Program
8ligible employees can take an eight&week sabbatical for every -1 years of full&time continuous service with the company.

Short ridays
Crom mid&May through mid&;eptember# McDonald's corporate# division and region offices' work hours begin a half hour early in order to end early 9-D11: on Cridays.

Leave of $%sence
8mployees may be faced with difficult situations that re$uire them to take time from work# McDonald's provides a leave of absence program with specific policies regarding types of leave such as family and medical leave# adoption leave and funeral leave.

$lternative &or' $pproach

To help corporate# division and regional office employees better balance their work and personal life# they may be able to arrange an +lternative %ork +pproach. There are two full&time options 9flex time and compressed work week: and two part& time options 9part&time schedule and ob sharing:.

$doption $ssistance
McDonald's adoption assistance program helps employees afford the costs associated with adopting a child under age -J. 8mployees are reimbursed for J1E of eligible expenses# up to G2#311 per child.

Child Care
McDonald's has agreements with three national child care providers & Childtime 6earning Center# Knowledge 6earning Corporation and 6a Aetite +cademy & for a -1E discount on tuition for employees. 9They do not offer discounted rates for children under age 2.:

(d)cational $ssistance
McDonald's educational assistance program helps support eligible employees in their efforts to further their education. 8mployees can get reimbursed for .1E of eligible expenses for grades (C( and above.

Matching *ift Program

Matching gifts program is designed to encourage employee support of not&for& profit organi"ations. %ith this program# McDonald's matches employee gifts to

$ualified educational# civic# cultural# health and youth organi"ations with one dollar for every dollar contribute by the employee.

(mployee Reso)rce Connection

This program gives eligible employees access to a broad array of services that help them manage many facets of their life outside the office# includingD Concierge services# financial services# legal services and counseling services.

International itness Cl)% +et,or'

8mployees can receive discounts on new membership or other rewards for existing membership at participating clubs nationwide# plus discounts on home fitness e$uipment# and online health and fitness information.

$)to and #ome Ins)rance Program

McDonald's employees can purchase auto and home insurance through the Met6ife +uto and =ome 'nsurance Arogram. The Met6ife +uto and =ome 'nsurance Arogram offers a McDonald's group rate plus other advantages.

Beyond&or'
)eyond%ork #hoping to attract more young adults and professionals# the chain is also adding amenities like 'nternet access and rental iAods.

Facilities
Crew room
This room is provided for the employee for recreation and rest during the break time. The employee can study# listen to music# and get trained in this room

Breaks
't is not easy to maintain $uality# service# and cleanliness. 't take hard work and hustle. To keep energy level high# all the crew member working above five consecutive hour are eligible for an unpaid break of an hour.

Employee Meal
,ne of the best things about working for McDonalds is for food. 8mployees can en oy $uality nutritious food at world standard hygiene levels. 't is free to managers and crew. +ll the meals consumed must be recorded and consumed in the restaurants itself.

Locker Facility
6ockers are available for the employees use at the restaurants for keeping the personal belongings in a safe and secure place during the shift.

Ot er Facilities
'n addition to the above facilities the employee also en oys with the team member during the yearly store outing and various inter&store activities arranged system&wise and patchwise. These activities are fun and provide opportunity to have a good time and know fellow employees better.

Retirement Benefits
Employee provident !"nd
+ll the employee are eligible for the provident fund scheme as per the companys rule. Arovident fund is a retire benefit provided to every employee of McDonalds. 8very employee contribute-2E of his basic salary to his@her AC account. There is an e$ual contribution by McDonalds employer. =owever J.44E of the employers contribution is deposited to the 8mployees Aension Cund and the rest goes to the Arovident Cund.

Employee #tate Ins"rance

+ll the crew member are eligible for the 8mployee ;tate 'nsurance as per the 8;' rule. This benefit is provided to the employee for free medical treatment in case of sickness# maternity# and employment in ury. The employee contribute -.53E of his gross salary where as the employer contributes 0.53E .

Bon"s:
Depending upon the law applicable at the relevant time the employee will receive an amount of J.44Eof the basic salary earned during the financial year.

$rat"ity
+ll the full time employee who have completed 3 years of continuous employment with the company are eligible for gratuity. The employee will receive an amount of -3 days basic salary for every week worked. The amount is given at the time of separation or retirement from the company.

+or, hop :
McDonalds 'ntercultural 6earning Aractice is uni$uely designed to promote diversity and create a more inclusive environment. ;ome workshops McDonalds offers its employees are as followsD

'ntercultural 6earning 6ab +sian Career Development )lack Career Development =ispanic Career Development 6esbian Lay Career Development %omens Career Development

CONCLUSION:
McDonald's believes that the success of the restaurants and the company is achieved through the people it employs. Their policies are based on the philosophy of our founder <ay Kroc who believed that# -I' you "a,e care o' your people. "he &u ine "a,e care o' i" el'/. Thus the company aims to recruit the best people and to retain them by offering various benefits and facilities.

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