Human Resource Development Program for McDonald's: An Analysis

This report provides a detailed analysis of McDonald's Human Resource Development (HRD) program. It begins with an overview of McDonald's and identifies key issues, particularly high employee turnover attributed to low morale and the associated costs of recruitment and training. The report then outlines the objectives of an HRD program aimed at reducing turnover by boosting workforce morale. It proposes a new HRD program, including a needs assessment, design phase focusing on financial and non-financial incentives, and an implementation phase. The report also covers an evaluation phase to assess program effectiveness. The benefits to both employees and the organization are discussed, including increased job satisfaction, motivation, and productivity. Various training methods like management games and simulators are recommended. The report also references HRD practices like providing job security and fair compensation. The Fomburn, Tchy and Devanna Model and the Harvard Model are discussed as frameworks. Finally, the report includes a training outline and an evaluation plan, offering a comprehensive approach to improving McDonald's HR practices and addressing employee retention challenges. The report also suggests that McDonald's implement maternity pay/leave, value employee opinions, provide internet access, offer discounts, and provide training and development opportunities.

Running head: BUSINESS ADMINISTRATION
McDonald’s
Business Administration
5/18/2019

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Table of Contents
Introduction................................................................................................................................2
Overview of McDonald’s.......................................................................................................2
Issues Faced by McDonald’s Human Report Management...................................................3
The objective of the program.................................................................................................3
Implementation of program....................................................................................................4
Needs Assessment Phase....................................................................................................4
Design phase......................................................................................................................4
Implementation Phase........................................................................................................6
Evaluation Phase................................................................................................................6
Benefits to employees and the organization...........................................................................7
Benefits to Employees........................................................................................................7
Benefits to Organization (Employer).................................................................................7
Training methods or HRD practices and justification based on HRD theory........................8
Management Game............................................................................................................8
Simulators..........................................................................................................................8
Human Resource Development Practices..............................................................................8
The Fomburn, Tchy and Devanna Model..............................................................................9
The Harvard Model................................................................................................................9
A training outline.................................................................................................................10
Tentative List.......................................................................................................................10

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Training Material Required..................................................................................................11
An evaluation plan...............................................................................................................11
Conclusion................................................................................................................................12
References................................................................................................................................13

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Introduction
Human Resource is the most vital resources of every business and its development is very
important for those businesses that are growth oriented and self-motivated. Dissimilar to
other key resources that are used by the business; human resource is the most capable and has
the potential to support the business in developing and growing in the proper direction.
Human resource is used as a collective term for numerous functions that assist the
organization in attaining growth and objectives through its vendors, employees, and staff
(Devadas, 2017). Human resource development team identify, nurture and practice the
capabilities of the employees operating for the organization. The human resource department
is responsible for offering a suitable climate for the workforce in order to support them in
properly working in the company (Kaušylienė, 2014). The intent of this report is to discuss
the present human resource development program for McDonald's. The report is also
planning a new human resource development program for the company which could provide
benefit to the organization as well as employees.
Overview of McDonald’s
McDonald’s is one of the well-known fast food company of America which was founded in
the year 1940 managed by Richard and Maurice McDonald in California. Both the owners of
the company introduced the business as a hamburger stand, and after some time the business
were turned into a franchise (McDonald’s, 2019b). The logo of the company was introduced
in the year 1953 in Arizona. In terms of revenue, McDonald's is the largest chain of the
restaurant across the world and serving around 69 million customers on a daily basis in
around 100 nations. McDonald's is popularly known in the market for its hamburgers, French
fries, and cheeseburgers. Along with this, they also offer breakfast items, milkshakes, chicken

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products, wraps, desserts, soft drinks, etc. In order to change the perception of the customer
of unhealthy food, the company has included fish, fruit, smoothies, and salad in its menu
(McDonald’s, 2019a).
Issues Faced by McDonald’s Human Report Management
McDonald’s is presently experiencing criticism for high employee turnover as the sign of low
morale of the employees in the organization; however, according to the report of BBC,
McDonald's precisely concentrate on the problems of employee turnover as the strategic gap.
The key challenges are recruitment and training is becoming very expensive. Hence the high
staff turnover is resulting in high operating expenses of the company. Besides this, because of
this issue, the company is regularly losing its skilled and experienced staff and it contributes
to the decreasing productivity (QSR Magazine, 2014). Many of the MNCs are dealing with
the issues of staff turnover, staff shortage, and the increasing cost of labor. The low employee
morale is being considered as the key reason for the high employee turnover in McDonald’s
and is being counted as the major failure of HR.
The objective of the program
Human Resource development program offers support for the future and current employee
development. They recognize the performance gaps, support the individual to attain their
long-term and short term objectives and support sequence planning by executing a
development program of leadership (Noe, R. A., Hollenbeck, Gerhart & Wright, 2017).
Effective HR development programs ensure organizational efficacy by ensuring that workers
get new employee alignment, performance provision to finish the assigned task successfully
and formal education to enhance productivity.

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The main aim of the Human resource development plan for McDonald’s is to reduce the
employee turnover in the organization by boosting workforce morale to work towards
attaining organizational short term and long term goal. The developed plan will guide the
company regarding what all laws and strategies to be adapted to the motive workforce to
sustain in the company for the longer term. The issue that the company is dealing with
presently regarding increasing employee turnover can only be managed by updating the
present strategies, commission, and incentive plans which can work towards motivating
workers. It is known that monetary incentives are not just the requirement of the employee,
non-monetary incentives are also equally important. Hence, the new human resource
development program will also consider this aspect.
Implementation of program
Needs Assessment Phase
HRD interventions are utilized to address gaps in the procedure or planning. A need could be
related to present deficiency or a new contest that demand an alteration in a new way (Thite,
Kavanagh & Johnson, 2012). As discussed above, McDonald’s is presently dealing with the
issues of high employee turnover due to the low morale of the employees. Due to high
employee turnover company is losing its skilled employees who work with dedication for the
organizational objectives. Low employee morale is the cause of inappropriate human
development strategies and development programs. The employee turnover is also resulting
in increased operational expenses of the company.
Design phase
The second phase of the human resource development program is the designing of the
program of HRM and training programs. The main aim of this development plan is to address

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the issue of increasing employee turnover and in order to overcome this; the company has to
first redesign its incentive and commission plan (Kumar, Ali & Kumar, 2013).
According to the Maslow's motivation theory, the three motivational needs must be fulfilled
one after other that is financial, non-financial, and social policy. In order to resolve the issue
of McDonald's, there is a need for three components for the employee's motivation that is
non-financial incentives, financial incentives, and social policy. McDonald's must allow its
employees to get involved in the decision making procedure. Each McDonald's manager must
be accountable to provide reward on a monthly basis by assessing the performance of the
workforce. The reward of around £25 must be offered to the worker. Besides this, being the
leader the manager of the restaurant must encourage employees to work fast. Things that will
be included in the program are:
 Maternity Pay/Leave
 Valuing the opinions of each employee
 Internet facility for the employees and crew room
 Discount for every employee
Training and Development
Each of the McDonald’s outlets promises its customer to offer cleanliness and standard
services. In order to offer this, it is very important for the organization to offer effective
training programs for the workforce. Under this development program, the company will
offer an inclusive training program for every employee. It must now offer merit-based
promotion. This will result in enhancing employee performance and to overcome the current
challenges of employee turnover and increased operational expenses.

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Implementation Phase
The aim of the need assessment and design phases is to execute an effective program of
HRD. This reflects that the program should be delivered or executed by making use of
appropriate methods.
Basis Purpose Responsible Team Time duration
Objective of
Program
In order to reduce the
employee turnover
Human Resource
Department
2-3 months
Acquiring
appropriate
material
Infrastructure for the
training program,
required material for
training, etc.
Top Management 2-3 days
Assigning
responsibilities
In order to have
scheduled an
organized program
Board of Directors 1-2 Days
Methods to be Used In order to have a
successful human
resource
development
program
Human resource
department
1 Week
Evaluation Phase
The evaluation phase is the final phase of the HRD procedure. At this phase effectiveness of
the program of human resource development is evaluated. This is an essential but mostly
understated activity (Phillips, Stone & Phillips, 2012). The evaluation phase will be executed

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carefully. Under this, the reaction and response of the employees will be evaluated in order to
understand the acceptance of the employees. In addition to this, it helps in assessing whether
the organization and employee gained any type of benefit from the implemented human
resource development program.
Benefits to employees and the organization
Benefits to Employees
 Some of the major benefits that will be gained by the employees of McDonald’s are:
 Increased job satisfaction due to effective business policies
 Increase the motivation of the employees due to financial and non-financial incentives
 Increased capability to accept new methods as well as technologies (Hargrove, Becker
& Hargrove, 2015)
 Motivation results in an increased number of innovations and effective ideas from
employees
Benefits to Organization (Employer)
 Increased motivation of the employees results in increasing productivity of the entire
organization.
 Adopting an effective human resource development structure
 Retaining a skilled and experienced workforce (Jehanzeb & Bashir, 2013)
 Human resource development will support McDonald’s in maintaining team spirit
among employees.

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Training methods or HRD practices and justification based on HRD theory
Presently, McDonald's is involved in offering on the job training to its employees, under
which employees are trained at the workplace with the real demo. This method is also famous
because it results in saving time as well as cost because employees gain training while
working at the site.
Management Game
McDonald’s can adopt management games as the training method in order to provide training
to the employees. Management games pretend the real-life issues that are experienced in the
workplace (Human Resource. Com, 2001). This method attracts every kind of trainee
including reflective, practical and active employees. This method could be used by
McDonald’s as it is one of the entertainment activities too for the employees, where they can
enjoy from the busy schedule.
Simulators
Simulators can also be used by McDonald’s in order to imitate the experience of real work
(Choquet, 2013). This method can be used by the experienced employees of the company in
order to train the newly hired worker by enacting the real situation or discussing the real
situation in order to teach how to react at a different situation.
Human Resource Development Practices
Providing Security to Employees – The initial best practice of human resource development
is the security of the employees. Life is unpredictable and work is one of the stable factors
that are essential for many people (Puhakainen & Siponen, 2010). If the employer provides
the employee with the security of the job in return of his/her best performance, results in
decreasing the employee turnover rate.

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Fair and performance-based compensation – Another human resource development
practice that could be adopted by McDonald’s in order to retain employees and reduce
employee turnover is offering fair compensation to the workforce. If the organization does
not offer fair compensation to the employees for their performance, it demotivates and
discourages them to work effectively and continue working at the same workplace (Digital
HR Tech, 2018). Considering the issue of low morale of employees at McDonald's is due to
the lack of proper compensation policies within the organization.
The Fomburn, Tchy and Devanna Model
The above suggestion for the practices of human resource is related to this model. This model
is based on four key components that are an appraisal, selection, reward, and development.
All these four components help the business organization in improving the performance of
the employees as well as the organization (Management Study, 2019). This model must be
adopted by McDonald's by offering proper reward and compensation for employee's support
in attaining organizational goals.
The Harvard Model
The Harvard model was introduced by Mills, Walton, Beer, Lawrence, and Spector in the
year 1984. This model comprises six key components that are human resource management
policy choices, long term consequences and a feedback loop, situational analysis, and human
resource outcomes (Price, 2019).
The stakeholder interest such as job security can result in enhancing the performance of the
employee.
Situational factors are said to be the environmental forces that affect the choice of the
management of human resource strategy.

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The choices of the HRM policy emphasizes the decision of the management
Human Resource recognizes the particular behavior of the employee which are said to be
desirable including commitment and high performance of the employee results in cost-
effective services or products.
The long term results of adopting this model are the wellbeing of the individual and
organizational effectiveness.
A training outline
This training program is for all the employees low level as well as a higher level of
employees. The training program will provide higher benefits to not just the organization but
also to the employees. This program will help employees in developing their career as well as
their present working behavior. The training program will also boost their morale as well as
motivate them to work with higher productivity.
All the managers, as well as employees, will follow and attend the Training program. The
first three months will cover three basic areas:
Food preparation
Cooking
Customer service and hygienic surroundings
The training session will be followed with 12 courses of training planned to back up what all
is learned at the restaurant and grow leadership, communication, and management.
Tentative List
Training session Schedule