McDonald's is not just a burger company serving people; they are a people company

serving burgers. The average McDonald's restaurant employs as many as 40 people - from crew
to the restaurant manager. As of today, they employ close to 2,500 people in India.
McDonald’s has over 30,000 local restaurants in more than 120 countries 70 percent of
our restaurants worldwide are owned and operated by independent, local businessmen
and businesswomen

"McDonald's vision is to be the world's best quick service restaurant experience.

Being the best means providing outstanding quality, service, cleanliness, and value, so
that we make every customer in every restaurant smile."

McDonald's Missions
• Be the best employer for our people in each community around the world
• Deliver operational excellence to our customers in each of our restaurants; and
• Achieve enduring profitable growth by expanding the brand and leveraging the
strengths of the McDonald's system through innovation and technology.
 

recruit people through various means including advertisements, campus interviews,

people referrals, placement agencies, Internet etc. Following are the basic steps involved

• Group Discussion
• Personal Interview
• On the Job evaluation
• Final Interview
• Offer Letter
• Orientation

At McDonald's training never stops. Our training policies are based on the
philosophy of our founder Ray Kroc who believed that, “If you take care of your
people, the business takes care of itself”.

Training is a combination of on-floor and classroom training provided through our

Learning and Development Team with exposure to the various aspects of the business.

The applicant then attends a first stage interview and is offered "On Job Experience"
(OJE). This is a 2-day assessment in a restaurant. Successful completion at OJE will lead
to a final interview, after which the manager decides whether or not to hire the applicant

McDonald's success is built on the highest standards of quality, service and cleanliness
delivered to customers in each of its restaurants. Well-trained crew and managers are the
first step to achieving these standards. It is company policy to provide career
opportunities that allow employees to develop their full potential. This includes a
comprehensive training programme for crew and operations management and career
progression that enables a 'first job' employee to progress through to a senior
management position through merit-based promotions.
MCDONALDS ORGANISATION STRUCTURE:
 McDonald’s Wages and Salary Administration:

McDonald’s is an equal opportunity employer. Rates of pay and conditions or

privileges of employment are established and granted without regard to race, color,
religion, age, gender, national origin, disability, or ancestry. However Average
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'. Their
primary responsibility is to prepare the food, serve customers and carry out tasks for the
efficient running of the restaurants.Other “hourly-paid employees” who work alongside
them include Training Squad Members, Dining Area Host/esses, Party Entertainers,
Administrative Assistants, Security Co-ordinators, Maintenance Staff, Night Closers,
Floor Managers and Shift Running Floor Managers. These employees carry out more
specific job functions. Their overall role, however, is to ensure the restaurant runs
efficiently.

The remaining restaurant-based employees are salaried managers. It is their

responsibility to manage the restaurant's operations, crew and business performance.

Managers’ wages range from $7 -$35 an hour

There are two types of managers each has a wage that reflect their responsibilities

“Swing”
“Salary”

The manager with most seniority present during the working hours is responsible
for the entire store.,Swing managers may represent the store in absence of a Salary
manager including work hour scheduling and task assignment.Only Salary managers may
distribute pay or deal with an employee’s pay .

Entry level positions (part and full time) start at minimum wage with possibility
of a raise every six months.If, at entry level, the candidate elects a “work any time” work
schedule he/she will start at $6.00 an hour
NON MONETARY INCENTIVES

McDonald's encourages employees through many effective ways. Except the base
pay, McDonald's establish competitive wage and promotion programs, hard work,
dedication, motivation and results are recognized and rewarded at McDonald's.
Appreciation comes in many forms - from a simple encouragement for a job well done, to
restaurant-wide recognition through programs such as the 'Employee of the Month.'
(McDonald’s,2006)McDonald's also offers great incentive programs with access to gift
certificates, merchandise, free food, etc.

BONUS:

The company pays a bonus on top of employees' base salaries based on business
performance and their individual performance.
Not only they establish the bonus system for the employees to perform efficiently,
but also they institute other kinds of systems to increase monetary incentives such as
recognition programs and company car program.

McDonald's Employee Benefits

The following information highlights McDonald's benefits for Staff 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 achieve our business goals and objectives.

Health and Protection

 McDonald's offers three Preferred Provider Organization (PPO) medical plan ptions
The plans have different benefit levels and its include a prescription drug program and an
unlimited lifetime benefit maximum.McDonald's medical plans cover preventive care,
including annual physical exams for employees and covered family members.

♥ Vision Supplement - Employees enrolled in McDonald's vision supplement plan,

are provided coverage for eyeglasses and contact lenses, and discounts on Lasik
laser vision correction surgery.
♥ Dental - Dental plan allows employees to see the dentist of their choice and
covers a wide range of dental services.
♥ Short and long-term disability -. Short term disability provides benefits if an
employee cannot work for more than 10 consecutive days. Long term disability
coverage replaces 60% of the employee's monthly base salary while he or she is
disabled.
♥ Employee and dependent life insurance - McDonald's provides basic life
insurance of two times the employee's base salary at no cost to the employee. In
addition, employees can purchase additional life insurance coverage for
themselves
♥ Accidental death and dismemberment insurance - AD&D covers employees if
they die or are seriously injured in an accident. McDonald's provides AD&D
coverage equal to two times the employee's base salary.
♥ Travel and business travel accident insurance - 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.
Pay and Rewards
McDonald pay and rewards program follows a "pay for performance" philosophy:
The better employee results, the greater pay opportunities.

Base Pay

Employees' base pay is the most significant portion of their compensation,

McDonald's maintains the competitiveness of base pay through an annual review of both
external market data and internal peer data. In our corporate, division and region offices,
McDonald's has a broadbanding compensation system. Broadbanding allows for
flexibility in terms of pay, movement and growth.

MONETARY INCENTIVES:

Incentive Pay

Incentive pay provides employees with the opportunity to earn competitive total
compensation when performance meets and exceeds goals. For McDonald's corporate,
division and region offices, the Target Incentive Plan (TIP) links employee performance
with the performance of the business they support.

Bonus:

TIP pays a bonus on top of employees' base salaries based on business

performance and their individual performance.

Long Term Incentives

Long 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

Recognition Programs

Recognition programs are designed to reward and recognize strong performers.

For McDonald's corporate, division and region offices, these include the Presidents'
Award (given to the top 1% of individual performers worldwide) and the Circle of
Excellence Award (given to top teams worldwide to recognize their contributions for
advancing McDonald's vision).
Company Car Program

Company car program provides eligible employees with a company car for both
business and personal use. If 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.

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

Profit Sharing and Savings Plan

Profit Sharing and Savings Plan lets employees save from 1% to 50% of their pay
on a tax-deferred basis in the 401(k) feature of the plan. McDonald's matches eligible
employees' contributions with $3 for each $1 of the first 1% of pay they contribute, and
$1 for each $1 on the next 4% they contribute. Eligible employees may also receive a
discretionary profit sharing match of 0% to 4% based on the first 1% of pay they
contribute. Employees are always 100% vested in their contributions and the company
matches.

Mc$ave

Mc$ave is a special money market fund for McDonald's employees. Money put
into Mc$ave is invested in the Prime Reserve Fund managed by T. Rowe Price.

MCDirect Shares

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

Credit Union

All McDonald's employees can take advantage of a full range of services

available through the Corporate America Family Credit Union.

Financial Planning Services

This program gives employees access to professional financial planning services

through Ameriprise Financial.
Other Benefits:
Balancing 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.

Vacation, Holidays

McDonald's offers paid vacation for corporate, region and division office
employees as well as Restaurant Management employees. The amount of vacation time
employees have available depends on how long they have worked at McDonald's. In
addition, McDonald's offers nine paid holidays (less for part-time workers) for eligible
employees.

Anniversary Splash

Eligible employees get an extra week of paid time off in the year when they reach
an anniversary “on the fives” – their five, fifteen, twenty-five or thirty-five year
anniversary.

Sabbatical Program

Eligible employees can take an eight-week sabbatical for every 10 years of full-
time continuous service with the company.

Short Fridays

From mid-May through mid-September, McDonald's corporate, division and

region offices' work hours begin a half hour early in order to end early (1:00) on Fridays.

Leave of Absence

Employees may be faced with difficult situations that require 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.

Alternative Work Approach

To help corporate, division and regional office employees better balance their
work and personal life, they may be able to arrange an Alternative Work Approach.
There are two full-time options (flex time and compressed work week) and two part-time
options (part-time schedule and job sharing).
Adoption Assistance

McDonald's adoption assistance program helps employees afford the costs

associated with adopting a child under age 18. Employees are reimbursed for 80% of
eligible expenses, up to $2,500 per child.

Child Care

McDonald's has agreements with three national child care providers - Childtime
Learning Center, Knowledge Learning Corporation and La Petite Academy - for a 10%
discount on tuition for employees. (They do not offer discounted rates for children under
age 2.)

Educational Assistance

McDonald's educational assistance program helps support eligible employees in

their efforts to further their education. Employees can get reimbursed for 90% of eligible
expenses for grades "C" and above.

Matching Gift Program

Matching gifts program is designed to encourage employee support of not-for-

profit organizations. With this program, McDonald's matches employee gifts to qualified
educational, civic, cultural, health and youth organizations with one dollar for every
dollar contribute by the employee.

Employee Resource 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, including: Concierge
services, financial services, legal services and counseling services.

International Fitness Club Network

Employees can receive discounts on new membership or other rewards for

existing membership at participating clubs nationwide, plus discounts on home fitness
equipment, and online health and fitness information.

Auto and Home Insurance Program

McDonald's employees can purchase auto and home insurance through the
MetLife Auto and Home Insurance Program. The MetLife Auto and Home Insurance
Program offers a McDonald's group rate plus other advantages.
BeyondWork

BeyondWork is a free Internet discount program for recreational products and

services. McDonald's employees in the U.S. can go online 24 hours a day, seven days a
week to BeyondWork's site and find valuable resources and savings on popular products.

Workshops:

McDonald’s Intercultural Learning Practice is uniquely designed to promote diversity

and create a more inclusive environment. Some workshops McDonald’s offers its
employees are as follows:

• Intercultural Learning Lab

• Asian Career Development
• Black Career Development
• Hispanic Career Development
• Lesbian Gay Career Development
• Women’s Career Development

• Hoping to attract more young adults and professionals, the chain is also adding
amenities like Internet access and rental iPods.

CONCLUSION:
McDonald's believes that the success of the restaurants and the company is achieved
through the people it employs. The company aims to recruit the best people, to retain
them by offering ongoing training relevant to their position and to promote them when
they are ready.

http://wiki.answers.com/Q/What_are_McDonald%27s_Health_Benefits
http://www.aboutmcdonalds.com/mcd/careers.html
http://www.mcdonaldsindia.net/
6. AN UPDATE ON MANAGER COMPENSATION11
Today McDonald’s defines itself as in the need for high-talented, young staff and enters
therefore competition to the big industrial corporations in the US. In order to keep the
attractiveness of McDonald’s, independent consultants compare annually the firm’s
compensation package to a peer group (mainly companies comprising the Dow Jones
Industrial Average Index).
While the meeting of quality standards and short term factors such as profit, sales growth
etc.are meant to be guided by a cash compensation system, long term stability is
reinforced by not only offering bonuses, but using ownership incentives as well, mainly
stock options.Therefore McDonald’s applies a general system as follows:
Short Term Incentives
Short term goals and mechanism to achieve them affect mainly the annual salary, by
using a standardized framework for all employees. The base salary is dependent on the
employee’s level of responsibility and his individual level of performance. For example
the remuneration at the level of a restaurant manager in the United Kingdom is between
22.000 £ (ca. 35.000 €) and 32.000 £ (about 51.000 €)12, not included profit bonuses.13
The exact amount is determined by the individual performance of the manager during the
passed business year - which in return is judged by evaluation.
The variable at-risk incentives are embedded in the “Target Incentive Plan” (TIP): Under
TIP,each employee is assigned a target incentive at the beginning of the year - a
percentage rate of the target incentive to the salary which increases with rising level of an
individual’s responsibility (i.e. with higher exposure to risk). In the United States, these
target incentives are adjusted for the US operational income, US profit and US cash flow
increases, as well as for consumer satisfaction and employee commitment (which is
especially important for restaurant managers). Concerning the last two facts, McDonald’s
emphasizes the following points:
-Ensuring customer satisfaction with top quality and service
-Recruiting, hiring, training and retraining hourly staff
-Managing costs of food, labor, and other controllables
-Preparing daily and monthly store reports
-Practicing good communications with crew and staff 14
For the “Rest of World”, objectives and their importance change slightly and consist for
the very most part of operational income, sales growth, return on assets and consumer
satisfaction. In order to avoid windfalls and risks caused by the influence of exchange
rates, international targets on an annual basis are defined in constant currency. The same
goes for long term incentive objectives. In France, McDonald's analyze the performance
of its restaurants and managers in great detail and therefore implemented a business
intelligence program to meet the requirements of management control. Apart from
analyzing real estate profits for franchised and owned restaurants, McDonald’s analyze
performance based on various elements: restaurant location, year of opening, type of
operation, etc to highlight key performance criteria for the restaurants and managers.15
Long Term Incentives
During the last decade, provision of property right incentives was introduced on a broad
range and became reality even for the bottom level of companies’ hierarchic structure.
McDonald’s is no exception. Up from the restaurant manager’s levels, stock options have
become a main tool aiming for long term profit. At McDonald’s stock options typically
have a lifetime of ten years, a vest over four to seven years and have an exercise price
equal to the fair market value at the grant date. The amount of stock options to receive
depends on the level of responsibility, the achievement of plan objectives and the
implementation of key strategies. In addition, McDonald’s strongly encourages its
employees to participate in ownership of the company. The minimum level of ownership
ranges from one to five times the basic salary.