Report on McDonald's Pay-for-Performance and Performance Improvement

This report examines McDonald's pay-for-performance system, focusing on its implementation and effectiveness. It begins with an overview of McDonald's history and its global presence, highlighting its employee base and investment in employee development through wages, salaries, and training. The report details the company's use of a pay-for-performance model, linking employee compensation to productivity and performance metrics. It discusses the benefits of this approach, including increased employee motivation, improved skills, and customer management. The report suggests potential improvements to the performance system, including the use of qualitative and quantitative measures to assess employee performance, focusing on customer satisfaction and operational efficiency. The report includes references to support the findings.

McDonald's Fast Food Company
Topic
Pay for Performance
Group

Contents
Introduction......................................................................................................................................................2
Background of Mcdonald..............................................................................................................................3
Introduction
The topic of this project is Pay For Performance and the company which we have adopted is
McDonald's (McD). This company is an American fast food company and it is now the world's
largest restaurant chain by revenue (Forbes, 2017). In this project, we will understand how McD
pays their employees based on their performance and later analyze how we can further improve
their performance system. The paper will begin with the history McD.

Background of Mcdonald
Mcdonald's is a fast food chain restaurant business, it started in the year 1940 by brothers
Richard and Maurice McDonald in California. At present time, there are approx 32000 restaurants
in 117 countries serving around 68 million people on daily basis. This large chain restaurant
business employees around 1.7 million people world-wide.
The company McDonald's invests much in their employees to motivate them by increasing
wages and salaries and by providing training to them. The restaurant has successfully implemented
strategies which makes the employees feel motivated and engaged with its benefits and reward
provisions(Tonkin and et.al., 2016). And it also offers some benefits to its employees, such as
healthcare and well-being to employees are provided in form of medical insurance, life insurance,
dental care, eye care vouchers, etc. Mcdonald's also provides company cars to its employees to
restaurant managers, staff of high level authority, and to employees as well of senior positions.
Mcdonald's uses pay for performance model which means employees are paid according to
their productivity and performance(Berenson and et.al., 2016). And it helps in motivating the
employees towards improving their work. This program enables the employees to work better and it
helps them to earn more which brings satisfaction and retention. The company Mcdonald's uses this
strategy so that it can motivate its employees and improve skills and knowledge in managing
customers.
The largest restaurant chain revenue business Mcdonalds can improve the performance
system by implementing and innovating the performance strategies(McDonald and Wilson, 2016).
It can use qualititative or quantitative performance system to measure the performance. Qualitative
measure refers to activities related to customer's experience, satisfaction, retention and sales.
Quantitative measures include activities involves different operations of the business. By using
innovative strategies, the company mcdonald's can improve its performance system.

REFERENCES
Berenson, R.A. and et.al., 2016. Pay-for-Performance.
McDonald, M. and Wilson, H., 2016. Marketing Plans: How to prepare them, how to profit from
them. John Wiley & Sons.
Tonkin, E., and et.al., 2016. History and ethnicity. Routledge.