People Management in Organizations: McDonald's Case Study Report

This report provides a comprehensive analysis of McDonald's people management strategies, focusing on people resourcing, recruitment, selection processes, induction programs, and training initiatives. It begins by defining people resourcing and its importance, highlighting the benefits such ...Read More

Managing People in
Organisations

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PEOPLE RESOURCING......................................................................................................1
Recruitment and selection process.........................................................................................3
INDUCTION PROGRAM.....................................................................................................7
TRAINING PROGRAMMES................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Management of people is most crucial factors within a hospitality industry which support
a company to achieve success in marketplace. Because in hospitality industry employees are
consider as the person who directly interact with customers and represent the brand on behalf of
their services (Bush and Middlewood, 2013). McDonald's is an American fast food brand which
is headquartered in California and operates its franchises throughout the world. This report
elaborates about the concept of people resourcing, its importance as well as challenges faced
during it along with the explanation of recruitment and selection process used by McDonald's. In
addition to this it also discuss about the importance of induction and training program within an
organisation along with major challenges faced during execution of this process.
MAIN BODY
PEOPLE RESOURCING
People resourcing refers to the process of acquisition, development, retention and proper
utilisation of human resource in order to fulfil the organisation's operational need. It focuses on
ensuring that the proper flow of skilled and competent personnel must be their within the
organisation so that they objectives can be achieve effectively. McDonald's always strives to
attract and hire best workers as they support in performing well which contribute toward
achieving success. People resourcing share certain benefits which support McDonald's in
achieving greater market success:
 People resourcing help in improving the quality of performance as it support in
developing a skilled and competent workforce which contribute toward achieving the
targets in an effective manner through their skills and capabilities. For instance, by
resourcing people with good communicational skills, McDonald's will be able to enhance
the employee-customer interaction. This support in making customers feel valuable and
comfortable at place which provide more satisfaction (Cartwright and Cooper, 2012).
 It also support in improving the employees performance as with the recruitment of more
workers the working pressure will get reduce as the work get divided among others. This
in turn will provide employees more time to focus on their current performance which in
turn will improve the business process and McDonald's will be able to deliver more value
to its customers.
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 People resourcing also support in bringing new or fresh ideas within the organisation that
support in satisfying the customer need in an appropriate manner. For instance,
McDonald's generally hire people that are young and among 60% of the total employees
are under the age of 20 years. So this support them in bring fresh or new ideas as per the
view point of young people because majority of its customers are youngsters.
These all are the benefit of people resourcing for McDonald's which support them in
achieving success and improving the performance at marketplace (Davies and Harty, 2013). But
apart from this there are certain challenges that may be faced by McDonald's while resourcing
people and these are as explained below:
Candidates receiving several job offers:- As the demand regarding the skilled workers
are increasing candidate get more option to choose from large pool of job offers. This is one of
the biggest challenge for McDonald's in resourcing people as they have to deal with offers that
are given by its competitors. This affect the hiring process of McDonald's as they sometimes not
get the employees with adequate skills due to more attractive offers provided by other
competitors.
Lower employee retention:- This is one of the most common issue faced by most of the
companies. As employees turnover get increased if they get unfair environment, behaviour or
compensation at workplace. Lower employee retention may affect the performance of
McDonald's which in turn will also affect the image of restaurant within the marketplace.
These are the challenges that are generally faced by McDonald's during resourcing of
people which have an direct impact on the overall performance. But in addition to this there are
certain trends that are current prevailing in market regarding the people resourcing. This will
support McDonald's in improving the organisational culture as well as quality of performance by
hiring and placing right candidates within the company (Hällgren and et. al., 2012). Following
are the trends within people resourcing:
Social recruiting strategy:- This is one of the most trending process of resourcing people
throughout several different places by attracting large number of people using social media sites.
Under this strategy McDonald's can place the recruitment ads over social media sites to attract
fresh talents who are not aware about company's hiring sites.
Diversity in hiring people:- It is one of the most prevailing concept among the employers
that operates their business over different geographical area. This support a company in dealing
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with people's that are belong to different culture which further help them in managing their
operations as per the norms followed by different peoples. As McDonald operates its franchise
throughout the world, so this strategy support them in developing a workforce that consists of
people belong to different religion or culture. This further help McDonald's in improving their
business processes and aligning the services without contradicting with the culture or norms of
people over different geographical area.
Recruitment and selection process
Human resource is considered as the most essential aspect of each business enterprises as
the growth and success of an organisation is based on the contribution of the employees within
the work place. McDonald's is an American fast food company which operates at global level for
the purpose of attaining higher growth and success within the competitive market. The major
concern area of the firm is to satisfying the needs and wants of people at market place in respect
to retain them for long run of business operations at global level (Taylor, Doherty and McGraw,
2015). For maintaining global operations, McDonald's is concern on hiring well skilled and
talented staff within the work place in respect to proper execution of organisational activities and
performance. In the outlets of McDonald's around 60 percent crew are aged 20 or under and for
most of the people a job with McDonald's would be their first experience of employment. For
retaining employee for long run of business operations McDonald's offers a career opportunity.
A well designed interview will identify an applicant's potential to be a successful McDonald's
employees. The management of company is concern on hiring people through performing a
script in which real life based situations are taken place in front of employees, Thus with the help
of script test management of organisation analyse the ability of employees for handle different
situations with their knowledge and ability. The script test helps the interviewer in look for
behavioural evidence in the applicant's life history which is significantly fits with the
requirement of the job. In the script test employer provides rated to the candidates on their
responses and offers jobs to the people who are best suited for the profile. McDonald's follow a
different recruitment and selection process, for the purpose of maximising strength of work
force, which helps the firm in satisfying the needs and wants of people at market place. The
recruitment and selection process of McDonald's is described as below:
Internal Recruitment: The internal recruitment is defined as the process of evaluating and
attracting applicants from a certain firm to another position within the same business firm.
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Instead of initiative the position to the public and grabbing the attention of random people some
companies may select to advertise the vacancy internally and only allow members of the staff to
apply. Internal recruitment is a best suited tool which is widely applied by large as well as small
business enterprises for the purpose of providing appropriate opportunities to their existing staff
member who are having potential skills to work on the progressive position (Teague and Roche,
2012). As a large business organisation McDonald's is widely focused on enhancing its market
reach through maintaining a good workforce, which helps the firm in fulfilling the needs and
wants of people at market place. The management of McDonald's is focused on internally
recruiting employees through providing them promotion which considered as the most attractive
source of fulfilling the vacant place for the firm.
External Requirement: External Requirements defines as the hiring process of people from
outside of the firm, it also refers as the process of seeking applicants from the individual who are
external to the firm. In the external recruitment process McDonald's directs applicants towards
applying online at its sites (www.mcdonalds.co.uk.) People who are not able to access the web
can call the Recruitment Hotline or pick up a pre-paid Business Reply Card from a McDonald's
restaurant. In the external recruitment selection process an initial online psychometric test has
been taken place through which an initial score has been provided to the applicants on the basis
of their on the job experience. This is around 2 day assessment in the outlets of McDonald's and
the successful on the job expectation leads the individual towards the final interview round in
which manager analyses the performance of applicants as per their 2 day assessment.
Advantages and disadvantages of Internal Recruitment
Advantages Disadvantages
In the internal recruitment process Recruitment
costs are lower because in this recruitment is
done among the available workforce
(Townsend and et. al., 2012).
The major disadvantage of internal recruitment
is that it can create conflict among colleagues,
because it is not possible for the firm to given
opportunity to each employees so this may
create negative impact on the morale of
employees.
McDonald's is widely concern on filling the
vacant place through the internal recruitment
In the internal recruitment not any new ideas
can be introduced from outside as in this
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process because it is less risky in nature as in
this management of the firm is providing
chance to those employees who are highly
skilled and best suited for the vacant profile.
organisation is not able to finding new and
broad ideas which is the major limitation of the
internal recruitment process (Tsohou and et.
al., 2015).
Advantages and disadvantages of External Recruitment
Advantages Disadvantages
The major advantage of external recruitment is
that it is effective for the firm in bring new
ideas and thoughts which helps the
organisation in exploring their business at large
scale. McDonald's is basically concern on
recruiting new and talented staff for the
purpose of enhancing their offerings at global
level (Valverde, Scullion and Ryan, 2013).
The process of recruitment of employees
through external recruitment is a long process
as this includes various steps to recruit the
employee. As McDonald has to give the
advertisement for the vacancies in the different
sources. Which is one of the longest process.
After this they have to conduct interviews and
the selection and rejection process.
In the external recruitment process
organisations has a larger pool of applicants
from which management of McDonald's
having the chance to recruit the best suitable
candidate for a particular job profile.
This is the process that is most expensive as
this includes the process of advertising and
conducting interviews. McDonald has to first
spend the money on advertisement then they
have to spend money on conducting
interviews. The process includes the selection
of the candidates which have applied through
advertisement and this gives the company a
narrow scope of selecting the candidate which
may not be the best candidate for the specified
job role
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INDUCTION PROGRAM
An induction programme is the procedure which is done to welcome new employees in
association. This helps them to understand culture of organisation and prepared them for the new
job roles and responsibilities. In case of McDonald's there are many departments such as
production, purchase, sales, serving, etc. hence with induction, it is easy to introduce candidate
with working style of concern department.
IMPORTANCE OF INDUCTION PROGRAM
Induction of employees is importance because there are many benefits which helps to
make long term relations with employees (Lin and Chen, 2012). With the help of induction, it is
easy to make new joinees aware about culture, trends, etc. of organisation. McDonald's is the
organisation which gives importance to employees and their retention because they feel that
growth of company can be done with their attitude and behaviour. Employee's induction is
important because through it association's policies, procedures can be known, knowledge about
training programme can be guided, organisational chart can be known. This helps to create an
image in mind of candidate, so they are clear about working style. Some of the importance of
induction are as under-
Knowledge about workplace culture- McDonald's is a big brand in restaurant sector.
This is the organisation, where numerous people are working. Hence it is essential for managers
to make new candidate comfortable at organisation. As per case study, it is clear that McDonald's
take new and fresh candidates, so they are not aware about corporate world. Hence with the help
of induction information about workplace culture can be known. This provides a guidance to
candidate to work up to the mark and hence possibilities of getting positive outcome is more.
Retention- With the help of induction, it is easy to retain employees in organisation.
Induction is the first impression which is present in mind of new candidate. Induction gives an
idea about style, reputation, staff, organisational chart, etc. which assist in maintaining long term
relationship with candidate. Hence when good image is set in mind of individual then they are
confident and give their best which ultimately improves productivity of McDonald's (Ma Prieto
and Pilar Perez-Santana, 2014).
Organisation's reputation- Main importance of induction program for McDonald's is to
integrate new people with old people. This helps McDonald's to make good image in industry
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with providing comfortable working environment. When employees are comfortable at their
work place, then this assist in improving performance.
CHALLENGES FACED IN INDUCTION PROGRAM
Apart from importance, there are some challenges of induction program. These issues can
be arise because of management of McDonald's or employees. Some of the challenges arise in
McDonald's are as under-
Lack of planning- Planning is one of the important aspect which has to be considered by
managers of McDonald's when they are think of induction. Induction is he program which gives
first impression to candidate. As per case study, McDonald's hires new people, so it is essential
to give them orientation with proper planning (Misener and Darcy, 2014).
Ineffective handouts- In induction, handouts, notes, brochure, etc. related to their job
profile. In case those notes are not properly complied, old data, etc. then this distracts candidates
and induction is not effective.
No follow ups- Follow up means taking feedbacks from candidate. This is one of the
important aspect which affects induction program in positive or negative manner. If feedback is
not taken, then negative issues can not known by managers of McDonald's and this affects
induction program in negative manner.
TRAINING PROGRAMMES
Training is the program which is conducted by organisation to train their employees in
some specific field. These days training of employees is necessary because, this is the way
through which employees can be trained related to specific field. Training program is beneficial
for McDonald's as well employees which are working. There is desire in employees to work with
latest techniques which can be done with the help of training programmes (Safari, Abdollahi and
Ghasemi, 2012).
There are two types training i.e. on the job training and off the job training.
 On the job training method is implemented when employees are working at organisation.
Transfer, promotion, job rotation, etc. are examples of on the job training.
 Off the job training is the method which is used when workers does not work in
organisation. Seminars, conferences are conducted by managers of McDonald's to
develop knowledge related to current trend.
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McDonald's believes in on- the job training because this is the method through which
employees can face issues which may arise in implementing new technique at workplace, so irt
gets resolved frequently.
IMPORTANCE OF TRAINING PROGRAMMES
Improvement in performance of employee performance- With the help of training
programme there is important in performance of employees as well as overall organisation. For
instance: new cooking machinery is installed at McDonald's then managers has to plan on the job
training programme to enhance skill. This helps to improve performance of workforce.
Adaptable to new techniques- Training is provided to workers, when there is up-
gradation in technology. Hence it means McDonald's is ready to accept changes. This helps to
make them learn new technology and implement to workplace. With learning, there is
improvement in working style of McDonald's because operational efficiency of workforce gets
improved (Schiuma, Carlucci and Lerro, 2012).
Addressing weakness- Training is provided to employees, if they are not capable to
perform operations in effective and efficient manner, so there is use of different aspects for
improving weakness and hence positive impact on performance can be analysed.
CHALLENGES OF TRAINING PROGRAMMES
Different learning habits- There are many employees in McDonald's having difference
in learning style. So his is the biggest challenge for managers to plan training program. There are
some personnel who prefer to learn through on the job training, while some people does not want
on the job training.
Lack of engagement- If employee's are less engage in training program, then this is not
fruitful. There are some employees in McDonald's who do not want to accept changes, hence
they do not take part in training programme. This affects decorum of training program and there
are possibilities that training program is not beneficial for employees and proves wastage of time
and cost.
Rapid changes- Changes are taking place very rapidly in restaurant industry, so
sometime providing training is costly approach for McDonald's. Hence they think to work with
old technique. But this affects morale of employees and operational efficiency of McDonald's in
negative way (Schulenkorf, 2017).
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CONCLUSION
From the above given report it can be summarized that management of people is a key to
success for an organisation but apart from this it is also one of the most challenging factor for a
company. Because there are number of challenges that a company have to face for recruiting and
placing a right candidates it may includes more attractive offers present in market and employees
turnover. But apart from this induction and training program also help a company within
resourcing people in a most efficient manner.
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REFERENCES
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large hospital project. Automation in Construction. 30. pp.15-24.
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485.
Lin, A. and Chen, N. C., 2012. Cloud computing as an innovation: Percepetion, attitude, and
adoption. International Journal of Information Management. 32(6). pp.533-540.
Ma Prieto, I. and Pilar Perez-Santana, M., 2014. Managing innovative work behavior: the role of
human resource practices. Personnel Review. 43(2), pp.184-208.
Misener, L. and Darcy, S., 2014. Managing disability sport: From athletes with disabilities to
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Safari, H., Abdollahi, B. and Ghasemi, R., 2012. Canonical correlation analysis between people
criterion and people results criterion in EFQM model. Total Quality Management &
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Schiuma, G., Carlucci, D. and Lerro, A., 2012. Managing knowledge processes for value
creation. Vine. 42(1). pp.4-14.
Schulenkorf, N., 2017. Managing sport-for-development: Reflections and outlook. Sport
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Taylor, T., Doherty, A. and McGraw, P., 2015. Managing people in sport organizations. Taylor
& Francis.
Teague, P. and Roche, W.K., 2012. Line managers and the management of workplace conflict:
evidence from Ireland. Human Resource Management Journal. 22(3). pp.235-251.
Townsend, K. and et. al., 2012. Accidental, unprepared, and unsupported: clinical nurses
becoming managers. The International Journal of Human Resource Management. 23(1).
pp.204-220.
Tsohou, A. and et. al., 2015. Managing the introduction of information security awareness
programmes in organisations. European Journal of Information Systems. 24(1). pp.38-
58.
Valverde, M., Scullion, H. and Ryan, G., 2013. Talent management in Spanish medium-sized
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Online
5 REASONS INDUCTION PROGRAMS ARE ESSENTIAL. 2018. [Online]. Available
through:<https://blog.hhr.com.au/5-reasons-induction-programs-are-essential>.
PROBLEMS COMMON TO ORIENTATION PROGRAMS. 2018. [Online]. Available
through:<https://careertrend.com/info-12152559-problems-common-orientation-
programs.html>.
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