MGT 6681 Case Study: Change Plan for McDonalds Employee Evaluations

This case study delves into McDonalds' initiative to revamp its employee annual evaluation system, shifting responsibility from managers to human resources due to the existing system's ineffectiveness. The analysis encompasses external factors, such as political stability and economic growth in the US, and internal factors, including brand image, customer satisfaction, and product development. The study employs the STAR model and Kotter's eight-step model to formulate and implement a strategic change plan. The proposed strategies involve addressing change resistance, encouraging innovative ideas, and introducing incentives to ensure employee participation. The case study also includes a detailed evaluation plan to assess the effectiveness of the implemented changes, providing a comprehensive framework for organizational improvement and leadership management. The analysis identifies strengths and weaknesses, opportunities and threats, and proposes strategies and implementation steps to address the problem, ultimately leading to improved employee engagement and organizational performance.

Running head: CHANGE PLAN FOR EMPLOYEE'S ANNUAL EVALUATIONS IN MC
DONALDS
Change Plan for Employee's Annual Evaluations in Mc Donalds
Name of the University:
Name of the Student:
Authors Note:

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Executive Summary
The change that McDonalds intends to bring within the company is transformation of its
employee annual evaluation system in a way that human resources take active part in the
evaluation process instated of the managers. Such change is considered to be implemented in the
company as the existing annual employee evaluation process turned out to be ineffective. The
managers involved in employee annual evaluations process were not efficient in keeping notes or
suitable records of employee behavior that could have been successful in sending consistent
messages to the employees. Considering such issue, the change plan is implemented that
involved human resources within the evaluation process. In supporting the change process,
employee evaluations is deemed to be carried out through employing relevant human resources
that can serve as the best way to engage employees in performing efficiency and attain their
organizational and career goals. For decreasing change resistance from the employees, the
company will also ensure that encouragement of innovative ideas regarding setting up of initial
performance goals along with introducing incentives for employees that can take part in changed
employee evaluation process successfully conducted by HR personnel.

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Table of Contents
1. Introduction..................................................................................................................................3
2. Analysis.......................................................................................................................................4
2.1. External Analysis..................................................................................................................5
2.2. Internal Analysis.................................................................................................................10
2.1.1. Internal Strengths and Weaknesses Analysis..............................................................10
2.2.2. Diagnostic Change Model (STAR Model)..................................................................12
2.2.3. Cultural Web................................................................................................................14
2.2.4. Structural Dilemmas....................................................................................................16
3. Formulation of Strategies..........................................................................................................17
4. Implementation..........................................................................................................................22
4.1. Kotter’s Eight Step Model..................................................................................................22
5. Evaluation..................................................................................................................................29
6. Conclusion.................................................................................................................................31
References......................................................................................................................................32

3CHANGE PLAN FOR EMPLOYEE'S ANNUAL EVALUATIONS IN MC DONALDS
1. Introduction
Change is prevalent in all sectors and is taking place because of increasing globalization
and rapid technological changes. With the change in time and evolution of organization, nearly
all the firms that wish of keeping their doors open and ensure long term growth and
development, are required to successfully undergo organizational change. The term
“organizational change” is widely conceptualized by several scholars as the “movement from the
status quo to a new, desired, configuration to a better match the environment” (Armenakis,
Harris & Feild, 2000).
This paper shall elaborate on identifying a problem within an organization that requires a
change initiative. It shall develop a case by means of highlighting and explaining the issues by
including the background of the case and analyzing the organization structure, processes and
operations of the firm. The chosen firm for this purpose if McDonalds. It is to note that
McDonalds is striving to implement successful change management program for ensuring that
the annual evaluation of the employees are completed by human resources instead of managers
in the organization. McDonalds is an American based fast food company founded in the year
1940 that has placed its restaurants over several locations all over the world. Despite being
successful international fast food chain the company is dealing with the issue of maintaining
effectiveness of its “people practices” through its existing employee evaluation plan. The
existing annual employee evaluations plan carried out by the managers in the company is
observed to be ineffective in ensuring employee productivity, commitment, retention along with
consumer loyalty. Such issues are observed to take place because of several reasons including
managers not offering timely feedbacks, improper review of poor performers’ issues and the

4CHANGE PLAN FOR EMPLOYEE'S ANNUAL EVALUATIONS IN MC DONALDS
under-performing employees are attaining similar review as performing employees. Considering
such issues McDonalds is considering rethinking its strategies to improve such situation
(McDonald's - Official Global Corporate Website., 2019).
Being the consultant of the organization the change management issue faced by the
selected company McDonalds will be addressed. In proposing solutions to the change
management problem faced by the company external an internal analysis of the company’s
business environment has been carried out. Based on such analysis Kotter's eight step model will
be implemented along with proposition a change management implementation and evaluation
plan in the company.
2. Analysis
Analysis of the different internal and external environmental factors in an organizational
context enables the same in maintaining the efficiency of the operations while operating in
diverse markets. Pulakos, Hanson, Arad and Moye, (2015) stated that the examination of the
different market situations enables an organization in influencing the strategy formulation and
implementation process. In this relation, the section will be considering the evaluation of the
internal and external environment of McDonald’s in US, which will assess the opportunities and
threats for the business. The assessment of the different situations would enable the organization
in maintaining the efficiency of the operations as per the needs of the venture while operating in
the different markets.
For an effective industry analysis, internal strengths and weaknesses framework is a very
useful tool as it helps in developing the business strategy (Desai, 2019). Strengths and
Weaknesses are considered to be internal to a company and on the other hand, Opportunities and

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Threats are regarded as external. It is to note that strength of affirm can be in terms of
management of the process of branding comprehensively and effectively. On the other hand,
weaknesses can depend on the products distribution and delays in payments. These are all
internal issues and they are required to be dealt with a continuous and ongoing process. Again, in
case of the external factors of opportunities and threats, there are the issues that are not under the
control of the company. The external environment of the business such as the social, legal,
national, economic, regulatory and international events fall under this category and these are all
required to be scanned continuously to remain updated on the same. According to Seifert,
Brockner, Bianchi and Moon, (2016), Strengths and Weaknesses analysis is “high-level strategic
planning model that helps organizations identify where they are doing well and where they can
improve, both from an internal and external perspective”. Below is mentioning the external and
internal analysis of McDonalds.
2.1. External Analysis
Factors Opportunity Threat
Political  The increasing political
stability in US would enable
the organization in improving
the line of operations as per
the sustenance related needs
of the venture (Telang &
Deshpande, 2016). It has
been noted that the increased
political stability in US has
 Governmental guidelines and
regulations for diet and health
and the evolving public health
policies in the nation might
restrict the capabilities of the
organization in offering fast
foods. The policies greatly
emphasized on improving the
quality of the propositions that

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contributed to the growth of
different support industries
which again fueled the
growth and expansion of the
concerned organization
 The US government held
international trade
agreements with Australia,
Bahrain, Chile and Colombia
and the like, which would
support the free trade
activities of the venture
(Miksch, Nguyen & Schulz,
2018)
are made by the restaurants
and café to have minimum
impact on public health. In this
relation, McDonald’s might
encounter specific issues in
correlating their activities with
the changing public health
policies in US (Thornton et al.,
2016)
Economic  The GDP of US grew by
5.2% and the employment
rate by 61% which has
backed the potentiality of the
customers (Schmid &
Gombert, 2018). Therefore,
the growing rate of
disposable income in the
nation would sufficiently
 The US- China trade war
would affect the scope of
growth in the organization in
China. The increased rate of
taxation and the minimization
of bilateral trade between
China and US might affect the
capabilities of the concerned
organization in holding a

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contribute to the growth and
expansion of the concerned
venture in the markets.
 The increased rate of public
spending based on disposable
income of the customers
would allow the organization
in increasing its scope of
holding a significant amount
of prospective customers.
sustainable position in the
Chinese markets (Mathur,
2017).
Social  Busy lifestyle of the US
population have made the
same more reliant on foods
that are prepared by the
concerned organization or its
competitors (Andreasson &
Johansson, 2016). It has
increased the chances for the
concerned organization in
improving the scope of
potential customers for the
value proposed by the same.
 The increased affordability of
 The growth of health
conscious customers in US
might restrict the capabilities
of the concerned organization
in retaining their market share.
It has been noted that around
44- 45% of the US population
are opting for healthy
substitutes of the propositions
that are made by the
businesses (Nagarajan et al.,
2019). The growing health
related concerns among the

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the customers might
empower the concerned
organization in improving
their business operations
people and the changing
preferences of the customers
would restrict the potency of
the venture in sustaining in the
markets.
Technological  The increasing R&D
operations of the industry
would contribute to the
competitive benefit of the
business while operating in
the different US markets.
 It has been noted that around
85% of the adults in US
access the internet through
mobiles which has enabled
the growth of many
organizations (Schmid &
Gombert, 2018). On the
other hand, 92% of the US
residences have access to
internet which would
contribute to the growth of
customer base for the

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concerned venture (Kane,
2016). 97% of the US
population are active in
different social media
platforms which would
empower the organization in
undertaking extensive
promotional activities
(Mathur, 2017). The
technological innovations and
internet accessibility would
enable McDonald’s in
targeting a large number of
prospective customers in the
US markets.
Environmental  The concerned organization
followed the triple bottom
line approach where the firm
contributed to the
environmental conservational
programs like Panda’s garden
and sustainable fisheries for
contributing to the
 Growing concern for
environmental conservation
and the Policies and
regulations imposed by EPA
(Environmental Protection
Agencies) might restrict the
capabilities of the organization
in improving the operational

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environmental protection
(Thornton et al., 2016). The
sustenance based operations
of the venture contributed to
its brand value
units.
Legal  The increasing rate of health
related regulations in the
workplaces and schools might
reduce the amount of
customers in the market. The
changing health related
regulation sin the economy
might affect the capabilities of
the organization in retaining
the primary target market of
the business (Murdock, 2017).
2.2. Internal Analysis
2.1.1. Internal Strengths and Weaknesses Analysis
Organizational
Pressures
Strength Weakness
Brand image The brand image and reputation is
based on the quality of the
The growing competition in the
markets through the new entrants and

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propositions and the competitive
edge of the business in the
different markets. The competitive
propositions that are made by the
business enabled the same in
improving their position while
operating in the different markets
(Morente, Ferràs & Zizlavsky,
2018).
their improved propositions might
affect the brand image. It has been
noted that KFC, Burger King and
Subway are the major competitors
along with the new entrants which
has threatened the position of the
brand.
Customer
satisfaction
The improved rate of customer
satisfaction is based on the tastes
and preferences of the customers.
The satisfaction of the customers
based on their inclination towards
burger related foods have greatly
contributed to the growth of the
venture.
The changing preferences of the
customers towards healthy
consumption related habits might
affect the capability of the
organization in retaining the huge
customer base.
Product
development and
quality
The quality of the proposition that
is being proposed by the
organization would permit the
venture in retaining the trust and
confidence of the customers.
The lack of efficient product
development might affect the
capabilities of the organization in
retaining the competitive edge while
sustaining in markets with new
entrants.

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2.2.2. Diagnostic Change Model (STAR Model)
The diagnostic change model that will be implemented by the company in successfully
establishing change within the annual performance evaluation plan will be through following the
STAR model (Brown, 2019). The diagnostic change framework includes five design policy
categories that can be managed by the company to shape the organization and behavior of the
involved people in the workplace. The aspects of this model will facilitate in identifying the
inconsistencies existing within the existing annual performance evaluation system within the
organization along with developing solutions for such issues.
Figure 1: The STAR Model
(Source: Soni, 2017)

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 Strategy: Ineffectiveness of managers in the company to review annual employee
evaluations has resulted in issues of improper review of poor performers and similar
rewards attained by performers and non-performers. In addressing such issue, the
company has developed strategy of developing a change plan where the annual employee
evaluations will be carried out by the HR department personnel that will be responsible
for reviewing performance of employees against strategic goals of the company.
 Structure: In implementing the change plan, active involvement from the employees and
the HR department is necessary. Departmentalization will be centralized in which the
power will be pushed down to the organization where the issues exist. Additional HR
departments will be developed that will have the power of analyzing trend of employee
performance on a monthly basis (Morris, 2018).
 Processes: Vertical change process will take place in the company where budgeting and
planning will be considered. HR based employee evaluation plan will consider keeping
regular employee performance data, developing performance reviews focused on
enhancing employee behavior and performance and recording employee performance
scores against attainment of each organizational objective.
 Rewards: HR personnel will be involved in developing a reward policy in motivating
employees to attain definite organizational performance goals. Employees will attain
rewards on the short-term wins. Pay increase and bonus will be relied on scores attained
by employees in their performance appraisal process conducted by HR personnel
(Mckimm, Jones, Mckimm & Jones, 2018).
 People: The HR personnel will attain training of four months on carrying out effective
employee annual performance evaluation through defining company’s vision to

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employees, using performance management software, providing constant performance
feedback, conducting employee recognition and conducting successful meeting in
discussing outcomes and skill gaps addressing needs.
2.2.3. Cultural Web
Cultural web analysis is a model in which the assumptions, organizational paradigm and
convictions within a particular company are clarified with the help of a total of six key elements.
The cultural web model is implemented in the company in aligning organization’s culture with
the changed employee annual performance evaluations strategy. The cultural web model
facilitates in changing organizations’ culture through developing new cultural assumptions and
practices aligned with the company’s change strategy (McKimm & Jones, 2018).

15CHANGE PLAN FOR EMPLOYEE'S ANNUAL EVALUATIONS IN MC DONALDS
Figure 2: Cultural Web
(Source: Charman, 2017)
 Stories: These are the stories of the events that are widely spoken of within an
organization. Such stories can promote organizational values of having an organizational
culture that prioritizes needs and improvement of employees after attaining outcomes
from the annual employee evaluation. In attaining support of people, the supervisors
share stories of company’s core values focused on supporting employees’ performance.
 Symbols: It is to mention that symbols are regarding the recognizable expressions of a
company like the office building, corporate identity, company logo, dresses or uniforms.
The behavior of employees is considered as symbolic expressions of the company being a
great place for working. Employee performance goals are set on standards related with
making effective contributions an innovating new ideas in attaining organizational goals
(McDonald's - Official Global Corporate Website., 2019).
 Rituals and Routines: The ritual and routines followed in the company is indicated
through its strict principles that it follows in its service and management of the business.
The company believes in promoting individual learning through leadership development
programs and through offering training and development opportunities on improving
productivity, quality and business effectiveness based on their annual performance
evaluation rankings.
 Power structures: In evaluating the annual performance of the company the power will
be allocated to the HR department personnel’s that will be responsive for influencing
decisions, operations and strategic directions based on scores attained from tracking
annual employee performance (McDonald's - Official Global Corporate Website., 2019).

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 Organizational structure: It is to mention that McDonalds is based on a matrix type
organizational structure that have a CEO who is responsible for all the operations in all
its stores present around the world.
 Controls: The pay and reward programs of the company is basically based on the
performance of the employees. The better they perform, the greater they will get earning
opportunities. The company also has a policy of providing career opportunities that
allows the employees to develop high potential (McDonald's - Official Global Corporate
Website., 2019). The restaurant is well structured as an independent business where the
management of the restaurant is given the responsibility of accounting, inventory control,
human resources, and training and community relations.
2.2.4. Structural Dilemmas
An effective change plan diagnostic instrument has been developed in successfully
recognizing and dealing with any structural dilemmas that might exit in the organization. A
rating scale of 1 to 7 has been developed here 1 will indicate strong agreement to the aspects
indicated on the left and 7 will indicated strong agreement with the aspects indicated on the right
(Telang & Deshpande, 2016). Moreover, scoring 4 on the rating scale will indicate that the left
and the right side aspects are neutrally balanced. In addition, changes will be deemed important
in the aspects where the company has attained score of 1, 2, 6 and 7.
Effectiveness of its “people practices” not
affected employee evaluation system
Effectiveness of its “people practices”
affected employee evaluation system
1 2 3 4 5 6 7

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Managers not offering timely feedbacks on
employee productivity
Managers offering timely feedbacks on
employee productivity
1 2 3 4 5 6 7
Light review of poor performers issues Strict review of poor performer issues
1 2 3 4 5 6 7
Under-performing employees are not attaining
similar review as performing employees
Under-performing employees are attaining
similar review as performing employees
1 2 3 4 5 6 7
Such diagnostic tool results have been gathered through attaining feedbacks on the
aspects from the existing employees in the company on the rating scale. From the revelations of
the diagnostic tool it is gathered that the managers that carry out employees evaluations are not
offering regular feedbacks to employees through tracking their monthly performances, review of
the issues faced by the poor performers are not carried out and there exist bias that is causing
under-performing employees attain similar reviews as of the performing employees in the
workplace (McDonald's - Official Global Corporate Website., 2019). Such issues are addressed
through developing recommendations by formulation of strategies.
3. Formulation of Strategies
McDonalds is planning to make changes in its employee annual evaluation process
existing in the organization in which it is considering to establish an incremental change of
carrying our annual employees through employing human resources rather than the managers. In
establishing such changes effective strategies ad goals are recommended to be followed by the
company in making this change plan a success. Based on the identification of change need in the

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organization, strategic recommendations in developing an effective annual employee evaluations
plan is provided based on implementation of four frame model. The aspects indicated in this
model can facilitate in developing recommendations based on issues identified from four
perspectives. Such strategic change recommendations in making the annual employee
evaluations plan effective through involving human resources are indicated below.
Figure 3: The Four-Frame Model
(Source: Telang & Deshpande, 2016)
 Political: The Company is recommended to develop an annual employee performance
evaluation plan where the human resource management personnel can implement three
stages of new appraisal system to be implemented in the company. The first stage of the
employee performance evaluation system will involve the human resource department
personnel to meet employees at the beginning of the year and prepare written agreement

19CHANGE PLAN FOR EMPLOYEE'S ANNUAL EVALUATIONS IN MC DONALDS
on goals, plans and activities of the year. Such standards of performance developed by
the human resource personnel will be on the measurable, attainable and specific terms. In
the second stage of employee annual evaluation the human resource department
personnel will carry out a discussion plan on the progress towards objective along with
employee performance strengths and weaknesses (Telang & Deshpande, 2016). These
personnel will also be responsible for signing an objective sheet indicating employee
progress. The third stage of employee annual evaluations plan will consider conducting
discussions of the human resource department with the employees regarding the
objectives addressed along with positive and negative feedbacks with scope of further
improvements in employee performance. Making such changes in the annual employee
evaluations plan can facilitate them in enhancing their individual capabilities of realizing
their merit raise amount.
 Human Resource: Employee annual evaluations are considered to be a vital tool for the
company that ensures benefits for the employees and the employers. Considering such
advantages, the company is recommended to increase active involvement of its human
resource department in making sure that the annual employee valuations are effectively
done and contributes to employee development within the workplace. The human
resource development of the company is recommended to take active part in developing
recruitment and training programs along with designing, implementing, managing and
enhancing employee evaluation processes in improving employee performance and
productivity.
 Structural: Another strategy that is recommended to be followed by the human resource
in the annual employee evaluations change plan is to include forms and administration.

20CHANGE PLAN FOR EMPLOYEE'S ANNUAL EVALUATIONS IN MC DONALDS
The employee annual evaluation process will be carried out by human resources through
administration that will include forms, policies as well as procedures communicated to
the managers along with the employees within the workplace. For instance, within the
employee annual evaluations change plan the human resource department can implement
a rating system that can be employee for evaluating employee performance in an
effective manner.
 Symbolic: Another effective strategic recommendation for ensuing that the annual
employee evaluations are effectively carried out by the human resource department is to
include training for management within the change plan. This strategy will involve
human resource department of the company to develop an effective employee evaluation
system and will considering development of a training program for the personnel or the
supervisors that will be responsible for evaluating employee performances. It is assumed
in the company that the managers have extensive knowledge of carrying our evaluation
of employees but this has increased issues related with not offering timely feedbacks long
with improper review of poor performers’ issues and the under-performing employees are
attaining similar review as performing employees. To address such concerns, the change
plan will consider that the human resource department offers specific training and access
to resources for supervisors along with type employees for ensuring proper procedure of
the employee performance evaluation is followed.
Certain other effective strategic recommendations are indicated below:
 One of the effective strategic recommendations that are offered to be including within the
change plan of the company is to involve human resources within the process of
employee performance monitoring and making constant improvements. It must be

21CHANGE PLAN FOR EMPLOYEE'S ANNUAL EVALUATIONS IN MC DONALDS
considered by the company that with future organizational changes the job requirements
will also change that necessitates a constantly developing employee performance
evaluation system. The human resource departments will have an active role in constantly
monitoring the annual employee evaluations system for making sure that it is addressing
the needs of employees, supervisors and the overall organization.
 The company is recommended to involve its human resource departmental controls in
making it reachable to the entire individual employee within the workplace. The human
resource management personnel must develop an appraisal system that can conduct
employee performance evaluations on a half yearly basis that is in every six months.
Such employee evaluation change plan can facilitate the employees in keeping track of
their individual performances. Based on such evaluation results, the rewards and must be
offered regularly for increasing motivation of its employees and the monetary rewards
can be offered to employees on a yearly basis based on half yearly results of employee
performances.
 The annual employee evaluations change plan is also recommended to implement certain
changes for increasing employee performance through ensuring that employees can
evaluate their own performance against the initially set parameters. Moreover, changes
within the annual employee evaluations program can also consider linking a part of
employee salary increase to individual performance measures such as variable pay. The
human resource department will also be responsible in categorizing the employees within
levels based on their annual performances within a relative ranking. In addition, based on
the outcome of annual employee performance evaluation performance-linked pay will be
rewarded.

22CHANGE PLAN FOR EMPLOYEE'S ANNUAL EVALUATIONS IN MC DONALDS
4. Implementation
4.1. Kotter’s Eight Step Model
The change that McDonalds intends to bring within the company is transformation of its
employee annual evaluation system in a way that human resources take active part in the
evaluation process instated of the managers. Such change is considered to be implemented in the
company as the existing annual employee evaluation process turned out to be ineffective (Kotter,
2000). This is for the reason that the managers that were responsible for carrying out employee
evaluations got busy with everyday responsibilities and also neglected necessary employee
interactions that could have offered the opportunity to coach and provide necessary work based
feedbacks. Moreover, another issue because of which such change plan is being implemented in
the organization is because of inconsistent messages bias issues. The managers involved in
employee annual evaluations process were not efficient in keeping notes or suitable records of
employee behavior that could have been successful in sending consistent messages to the
employees. It was also turning out to be difficult in keeping biases from managers of the annual
employee evaluation process as it demanded a highly structured and objective process to be
followed by managers to remain unbiased within the evaluation process (Small et al., 2016).
Performance evaluations rater errors were observed to be present among managers that
were responsible for assessing employee performance and for ensuring fair employee annual
evaluations, the change plan will be implemented that will involve human resources within the
evaluation process. In implementing the change management process successfully within
McDonalds, Kotter’s eight step changes model have been implemented for generating a
supportive climate of change along with engaging and enabling the overall organization to
sustain the changes (Pollack & Pollack, 2015).

23CHANGE PLAN FOR EMPLOYEE'S ANNUAL EVALUATIONS IN MC DONALDS
Figure 4: Kotter’s Eight Step Model
(Source: Calegari, Sibley & Turner, 2015)
For successfully implementing the new employee annual evaluations program within
McDonalds through involving human resources of the company within the evaluation process
instead of the managers, the steps explained within the model will be followed as under:
 Creating sense of urgency: This step focuses on recognizing and analyzing the threats
that can take place in the company at the time of monitoring the opportunities which can
be taped by means of certain potential interventions. The senior management of the
company realized that a change in existing employee annual evaluation system is
important for improving the performance of employees and in offering them financial
rewards as per their annual contributions to attainment of organizational goals (Teixeira,
Gregory & Austin, 2017). Certain issues are observed to take place because of several

24CHANGE PLAN FOR EMPLOYEE'S ANNUAL EVALUATIONS IN MC DONALDS
reasons including managers not offering timely feedbacks, improper review of poor
performers’ issues. Organizational changes through implementing new annual employee
evaluation program that will be carried out through employing human resources is
considered to be as an internal factor that was realized by the company after analysis of
its financial report which established a sense of urgency.
 Generating a guiding coalition: In this change implementation step, the company will
develop a human resource department team that can support the employees in
understanding the change process in their annual performance evaluation process
(Chappell et al., 2016). A team of effective leaders will also be developed by the
company that will be responsible in recognizing employees change resistance barriers
addressing which can motivate employees in taking active participation within their
annual performance evaluation process.
 Developing a clear shared vision: This step involves determining the vital values along
with explaining vision and efficient strategies for implementing change in annual
performance evaluation process in the company. In this step the personnel within the
human resource department will be responsible for communicating their approach in
employee annual evaluations that can contribute to enhanced performance of employees.
For instance, the HR department will analyze employee performance trends through
using talent management software like eperform in analyzing employee performance
trends (Higgins, 2016).
 Communicating the vision: In this step the company will involve its human resource
department personnel to communicate changes in the annual performance evaluation
system with employees. Suitable technologies and communication mediums will be

25CHANGE PLAN FOR EMPLOYEE'S ANNUAL EVALUATIONS IN MC DONALDS
employed in communicating that the HR department will conduct their training and
annual performance evaluation process with a vision to increase productivity of the
workforce and developing more beneficial reward plans for employees. To avoid any
conflict among the management and employees as change resistance the higher authority
will guide the employees in suitably responding to such change.
 . Empowering the people to act on such vision: This step involves addressing obstacles
in the changed employee annual evaluation process in the company and ensuring that the
performance evaluation structure is aligned with company’s vision of enhancing
employees’ performance (Huges, 2016). The company requires empowering its
employees through involving them in the evaluation process that will be carried out by
the human resource personnel. Discussion session will also be implemented where the
employees will be communicated regarding the change and they will also be provided
with responsibilities in realizing their personal abilities and identify their skill gap based
on which the HR department will carry out performance evaluation through tracking
progress of employees goals all through the year.
 Creating short term wins: Through successfully implementing the new employee
annual evaluation program, McDonalds must focus on motivating the employees in the
organization to attain performance goals through creating short term targets for them
attaining which can result in low degree of performance gaps. In the annual employee
performance evaluation program developed for the employees of the company, the
human resource department personnel will be responsible of designing training programs
and performance evaluation sheets for the employees (Barrett et al., 2015). These
employees will undergo communication sessions on internal discussion forums for four

26CHANGE PLAN FOR EMPLOYEE'S ANNUAL EVALUATIONS IN MC DONALDS
hours each day in the duration of five months. In addition, the organization will also need
training manuals, computer-based lessons along with audio-visual aids that will include
processes that will be followed by HR personnel in carrying out employee evaluation
process.
 Consolidating along with building on the gains: In this step the company will ensure
attaining continuous improvement through evaluating success stories and aligning them
with the change initiatives on all predefined opportunities (Gong, Boh, Wu & Kuo,
2019). For successful implementation of change, the company requires to change the
employee performance evaluations policies that can provide guidance to employees and
HR personnel in developing ideal performance management processes including
completion rates, scores along with status reports.
 Institutionalizing the changes: McDonalds have realized the need of new strategies for
successfully implementing change in the annual employee performance evaluation
process. For decreasing change resistance from the employees, the company will also
ensure that encouragement of innovative ideas regarding setting up of initial performance
goals along with introducing incentives for employees that can take part in changed
employee evaluation process successfully conducted by HR personnel. Such change
management processes and related incentives will be communicated to the employees
through conferences, meetings and e-mail medium.
Addressing Change Resistance
In dealing with change resistance from employees, McDonalds will focus on developing
the change resistance program in the company that can encourage development of positive
attitude among employees that the proposed new changes will secure their position after

27CHANGE PLAN FOR EMPLOYEE'S ANNUAL EVALUATIONS IN MC DONALDS
transforming the employee annual evaluations process. In addressing resistance from employees
in the form of employee turnover and grievances with the management, the company will make
efforts in improving their skills and knowledge is that they are motivated to accept their changed
employee performance evaluation system effectively (Steers & Lee, 2017). Moreover,
implementing executive leadership to plan for the change management where the leader will
focus on setting examples can also be effective in encouraging the employees to follow
organizational change goals. Effective strategies that will be employed by the company in
dealing with resistance to change are indicated below:
 Increasing employee commitment through smooth flow of communication by employing
techniques such as online group discussions where they can ask questions regarding the
change process.
 Increasing participation of employees in the change plan can increase employees’
commitment level towards the change and make it a success. The employees can offer
ideas regarding the new employee annual evaluations plan and can also communicate
their expectations from the human resource department in the evaluation process.
 Developing positive relationships through company’s internal discussion forums where
the employees can attain supportive and helpful answers regarding the changed annual
employee evaluation process and the issues that can be addressed through involve HR in
the evaluation plan (Altındağ & Kösedağı, 2015).
Communication Plan
The communication plan developed for the company will completely focus on
elaborating the causes for which the change in annual employee evaluation process is taking

28CHANGE PLAN FOR EMPLOYEE'S ANNUAL EVALUATIONS IN MC DONALDS
place in the company and also regarding the ways in which human resource department carrying
out employee performance evaluation can positively impact job performance and recognition of
the employees. The communication plan will include use of various internal communication
mediums like e-mails, conferences along with meetings through which the employees will be
communicated regarding companies expectations from them within the change process and the
likely benefits they will attain from such change in their performance evaluations process
(Sharma & Sharma, 2017). Implementation of internal communication mediums and
technologies will also consider circulating important information regarding the steps that will be
followed by the human resources in the annual employee evaluating processes along with the
performance benefits and rewards that can be secured by the employees in this changed
evaluation plan.
Image of Change
Though implementing the change management process within the organization
McDonalds will focus on changing its employee annual performance evaluation process that can
further facilitate it in driving sales margin and improving performance of employees within the
workplace. Through implementing change within the annual employee evaluations processes, the
fast food chain will involve the human resource department in the employee evaluations process
and incentivize them for positioning the brand image of McDonalds being sustainable that offers
employees a highly effective performance evaluation system so that they attain rewards as per
their performance levels (Sharma & Sharma, 2017). In addition, through brining in changes
within the company’s annual employee evaluations process through which the company will
change its brand image to be highly employee centric organization that creates an environment
where employees performance are recognized. Moreover, McDonalds intends to improve its

29CHANGE PLAN FOR EMPLOYEE'S ANNUAL EVALUATIONS IN MC DONALDS
image of change through communicating among employees regarding importance of
involvement of human resources in employee evolution process in an attempt to effectively
review and reward employees’ attainment of work objectives and their overall contribution to the
organization.
Lessons Learned
Through ensuring successful implementation of Kotter's eight step change management
model, it is gathered that McDonalds can introduce employee annual evolution programs from
attaining active involvement from the human resources in the change process. In addition,
application of Kotter’s Change management model in McDonalds is deemed to be facilitating the
employees of the company to understand each step of the change process in a better manner. It
has also been considered that effective implementation of the change steps will require additional
cost along with time for its management.
5. Evaluation
In supporting the change process, employee evaluations will be carried out through
employing relevant human resources that can serve as the best way to engage employees in
performing efficiency and attain their organizational and career goals. The human resource
manager will develop certain procedures that that will facilitate in supporting employee self-
evaluations that includes constant review and up gradation of processes and employing talent and
feedback management software (Sharma & Sharma, 2017). The employees will rate themselves
on the talent and feedback management software on the rating scale of 1 to 5 where there will be
performance evaluation aspects related to:
 Growth in sales

30CHANGE PLAN FOR EMPLOYEE'S ANNUAL EVALUATIONS IN MC DONALDS
 Increase or decrease of customers visiting McDonalds Stores
 Quality scores as compared to the competitors.
 Effectiveness of marketing communications campaign
In addition 360 degree employee performance evaluation method will also be employed that
will measure employee performance in terms of developing quality food, teamwork, effective
consumer services offered and collaboration (Sharma & Sharma, 2017). Employees will rate
themselves against these aspects and along with that performance of the employees will be
judged through attaining review of other employees working in the same workplace environment
and has undergone change management training programs.
Person
Responsible for
Collecting Data
Performance
Evaluation
Measures
Due date Reporting to
Employees Through
carrying out
self-evaluation
of their
performance in
the talent and
feedback
management
software
employed by the
company for
3 months HR Manger

31CHANGE PLAN FOR EMPLOYEE'S ANNUAL EVALUATIONS IN MC DONALDS
performance
evaluations
6. Conclusion
Being the consultant of the organization the change management issue faced by the
selected company McDonalds will be addressed. In proposing solutions to the change
management problem faced by the company external an internal analysis of the company’s
business environment has been carried out. The paper revealed that the change that McDonalds
intends to bring within the company is transformation of its employee annual evaluation system
in a way that human resources take active part in the evaluation process instated of the managers.
Such change is considered to be implemented in the company as the existing annual employee
evaluation process turned out to be ineffective. In implementing the change plan, active
involvement from the employees and the HR department is necessary. Employee annual
evaluations are considered to be a vital tool for the company that ensures benefits for the
employees and the employers. Considering such advantages, the company is recommended to
increase active involvement of its human resource department in making sure that the annual
employee valuations are effectively done and contributes to employee development within the
workplace. Departmentalization will be centralized in which the power will be pushed down to
the organization where the issues exist. The annual employee evaluations change plan is also
recommended to implement certain changes for increasing employee performance through
ensuring that employees can evaluate their own performance against the initially set parameters.

32CHANGE PLAN FOR EMPLOYEE'S ANNUAL EVALUATIONS IN MC DONALDS
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