Reward Management in McDonald's: Challenges and Recommendations

Running head: REWARD MANAGEMENT
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REWARD MANAGEMENT
Contents
Introduction...........................................................................................................................................2
Discussion..............................................................................................................................................2
Conclusion.............................................................................................................................................7
References.............................................................................................................................................8
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REWARD MANAGEMENT
Introduction
Reward management procedures are generally established on reward philosophies and
approaches and covers arrangement in the form of policies and approaches, guiding
principles, practices as well as reward management structure. In this report reward
management systems of McDonald have been discussed through identification of their
current practise as well as challenges related to reward system and then recommending
effective approach to develop strategies that can address issues that have been identified.
Discussion
According to Business Premium Collection (2016) McDonald’s is a reputed brand in fast food
industry across the world and its operates in over 100 nations. Generally their approach is
establishment of franchise system to expand the business and over 90% of their business are
owned and operated with franchisees. The main activity of McDonald’s is serving locally
preferred fast food items and beverages with sharp focus on maintaining quality and is
offered to customers at different price points. As stated by Azim and Azim (2012) the
popularity of McDonald’s has been retained due to their business strategy that focuses on
building brand strength through quality standards and wide range of food choices being
extended to almost all markets globally. Also adaptation of food offerings and services
according to preferences of geographies depending on localisation of food menus with local
taste and preferences is also key business strategy of McDonald’s. Though the food offered in
different geographical markets are localised but they still offer by and large some
standardised menus. According to Mangelsdorf (2012) aanother strategy of McDonald’s is
their focus on innovation where they regularly experiment with new product and flavours to
bring exciting menus in market and they have consistently maintained their competitive edge
with focus on affordable pricing, quality of food, customer convenience and innovation in
flavour.
Further McDonald’s currently has nearly 235,000 employees globally and they are equally
responsible for their employees and offers them equality at work based on merit. Also as
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